[Urgent] [Public Comment] Proposed Renewal of .org Registry Agreement

Kathy Kleiman kathy at DNRC.TECH
Sat Apr 27 20:21:47 EEST 2019


Milton,

These are tried and true ways that have worked for many  years. But I'm 
game: what would you propose to prevent gouging?  It's a good time for 
great ideas!

Best, Kathy

On 4/27/2019 8:57 PM, Mueller, Milton L wrote:
>
> Kathy,
>
> What “the drafter” is proposing is that ICANN take on the power to set 
> prices for registries. I don’t want ICANN to do that or be that. 
> First, I think prices should be set by the market. Second, I think we 
> can prevent registries from gouging their customers in better ways.
>
> --MM
>
> *From:*NCSG-Discuss <NCSG-DISCUSS at LISTSERV.SYR.EDU> *On Behalf Of 
> *Nadira Alaraj
> *Sent:* Saturday, April 27, 2019 5:03 PM
> *To:* NCSG-DISCUSS at LISTSERV.SYR.EDU
> *Subject:* Re: [Urgent] [Public Comment] Proposed Renewal of .org 
> Registry Agreement
>
> +1 Kathy
>
> Thank you very much.
>
> On Sat, Apr 27, 2019, 20:39 Kathy Kleiman <kathy at dnrc.tech> wrote:
>
>     Hi Nadira, Tx you for your comment.  The drafter appears to have
>     the same thoughts in writing the comment.  He expresses a concern
>     for the 10 million incumbent .ORG registrants, all of whom
>     registered their domain names with the expectation of price caps
>     and limited price increases - and many of whom have been in their
>     domain name space for years if not decades, with well-known
>     websites, email address and listservs making switching costs very,
>     very high.
>
>     Here's what the comment proposes on this issue:
>
>     "On the other hand, as the home for schools, community
>     organizations, open-source projects, and other non-profit
>     entities, this registry should not necessarily operate under the
>     same commercial realities that guide other domains. Fees should
>     remain affordable, with domains which are priced within reach of
>     everyone. Consequently, rather than removing the price cap
>     provisions entirely, we suggest that they should be raised by a
>     reasonable level, or at the very least, that this aspect of the
>     contract should be subject to review at the midpoint of the
>     contract, to assess its impact on the ability of potential
>     registrants, particularly non-profits or charities, to register
>     and renew domains at a reasonable cost."
>
>     *Recommendations:*
>
>     *2.      Rather than removing price caps from the agreement
>     entirely, these should be retained but raised by an appropriate
>     amount. In the alternative, this aspect of the contract should be
>     subject to a review midway through the contract, based on the
>     impact of the price changes on non-profit registrants.*
>
>     I think this address your middle ground of not typing PIR to its
>     current 2013 prices, but not allowing unrestricted increases.
>
>     Best, Kathy
>
>     On 4/27/2019 9:34 AM, Nadira Alaraj wrote:
>
>         Note: I slipped the "not" from my sentence.
>
>         *so that the new contract not be retroactive, in order to the
>         current .ORG registrants not be affected.
>
>         On Sat, Apr 27, 2019, 15:37 Nadira Alaraj
>         <nadira.araj at gmail.com <mailto:nadira.araj at gmail.com>> wrote:
>
>             Dear Kathy and all
>
>             Thank you for the through investigations on this matter.
>
>             I was wondering if there is a way, so that the new
>             contract to be retroactive, in order to the current .ORG
>             registrants be affected. By any increase in case the
>             community couldn't bring the cap increase down.
>
>             Another issue I didn't read in many of the comments that
>             not all .ORG registrants are NGOs hence there are some
>             registrants who might take advance of the current status.
>
>             These are my 2 naive thoughts,
>
>             Best wishes,
>
>             Nadira
>
>             On Sat, Apr 27, 2019, 02:21 Kathy Kleiman
>             <kathy at dnrc.tech> <mailto:kathy at dnrc.tech> wrote:
>
>                 Hi Milton, Amr and All,
>
>                 Unfortunately, I read the contract differently and
>                 fear that the current 10 million .ORG registrants face
>                 a difficult (and expensive) future. To Milton's
>                 excellent question, /What, exactly, are those
>                 “protections for existing registrants”?/, the answer
>                 is /"not much."/ Here's the pricing provisions of the
>                 .ORG proposed agreement (and I’ve been checking with
>                 domain name attorneys all afternoon):
>
>                 2.10(a) Registries provide registrars with a 30 day
>                 notice of price increases (registrations).
>
>                 2.10(b) “With respect to renewal of domain name
>                 registrants” Registry will provide registrars with
>                 “advance written notice of any price increase, and
>                 “Registry Operator shall offer registrars the option
>                 to obtain domain name registration renewals at the
>                 current price (i.e., the price in place prior to any
>                 noticed increase) for periods of one (1) to ten (10)
>                 years at the discretion of the registrar, but no
>                 greater than ten (10) years.”
>
>                 */But the option to allow renewal for 1 to 10 years is
>                 at the option of the registrar. There’s nothing that
>                 requires the registrar to notify registrants that the
>                 price of their .ORG domain names will be going
>                 (possibly dramatically) and that the time to renew is
>                 now. This is something that is being written about a
>                 lot, but I don’t see it in the contract. (Some
>                 registrars may let their registrants know early;
>                 others may not.) There is absolutely no requirement of
>                 notice to the registrant of a price increase for
>                 renewals – for .ORG (or any other registry which has
>                 signed this agreement). /**//*
>
>                 2.10(c) “In addition, Registry Operator must have
>                 uniform pricing for renewals of domain name
>                 registrations (“Renewal Pricing”). For the purposes of
>                 determining Renewal Pricing, the price for each domain
>                 registration renewal must be identical to the price of
>                 all other domain name registration renewals at the
>                 time of such renewal”  with some vague additional
>                 language about not wanting to allow abusive and
>                 discriminatory renewal pricing.
>
>                 */Thus, PIR’s job is to charge all registrars the same
>                 price for new registrations and renewals – whatever
>                 that price is and however much PIR wants to charge.
>                 This is no guidance about abusive and discriminatory
>                 renewal pricing, no definitions and no clear
>                 limitations. /*
>
>                 Overall, I think Akriti Bopanna’s comment for The
>                 Centre for Internet and Society, India, today is right
>                 on point:
>
>                 *“Removal of Price Caps*
>
>                 “ICANN’s decision to remove price caps in the .org
>                 agreement will only intensify the unfettered power
>                 given to Registries with the presumption of renewal. The
>
>                 organization has long heard accusations of engaging in
>                 closed door decision making
>
>                 and with such a move that pushes for the rights of
>                 registries over registrars, such
>
>                 concerns are only growing. As it is, .org can raise
>                 its prices by 10% every year which is
>
>                 unduly generous in itself.5 Giving PIR a limitless
>                 ability to increase prices would be
>
>                 doing grave injustice to domain owners who have bought
>                 such domains under the
>
>                 assumption of price caps. This is in contrast to the
>                 new gTLDS where there is more of
>
>                 a burden on such owners to keep up with the actions of
>                 private owners. Legacy
>
>                 gTLDS, unlike the new ones, were not created and sold
>                 to private entities but handed
>
>                 over to entities like PIR to maintain them in public
>                 interest.
>
>                 “Being one of the first TLD’s to be introduced, a
>                 multitude of significant websites and
>
>                 therein, initiatives, have their home on the .org
>                 domain. As pointed out in the
>
>                 community discussions several times, these domains are
>                 used by NGO’s, nonprofit
>
>                 trade associations, individual member associations as
>                 well as tax-exempt charities.6
>
>                 ICANN’s justification for proposing these steps is to
>                 align legacy gTLD agreements with those of the other
>                 newer gTLDS but as argued by the Internet Commerce
>
>                 Association;
>
>                 “They have completely different characteristics,
>                 history, and ownership
>
>                 structure. It is not acceptable for ICANN to ignore
>                 these differences and to
>
>                 propose that they be treated the same.7
>
>                 “Given the longevity of these domains on .org, they
>                 have put in substantial investment
>
>                 in maintaining their online presence and cultivating
>                 their identity and brand. They
>
>                 are entitled to protection from arbitrary pricing and
>                 having the same financial rules
>
>                 as when they originally bought their domains. If such
>                 caps are removed then many of
>
>                 these domain owners can find it too expensive to
>                 maintain their sites, especially with
>
>                 no guarantee of future price stability as well. A look
>                 at the mailing lists is enough to
>
>                 see how small organizations are actively pleading with
>                 ICANN to not go ahead with
>
>                 this because it will increase their operational costs.8
>
>                 “None of this is to say that PIR would, in fact, go
>                 ahead and increase the prices
>
>                 exorbitantly or at all, however leaving that option to
>                 them does not bode well for any
>
>                 party save them. Further, no clear reasoning has been
>                 provided for such a step like
>
>                 the need for any additional funds to maintain the
>                 domain and in absence of any
>
>                 exceptionally necessary situation, the price cap
>                 should continue to exist. Given that
>
>                 PIR is a not-for-profit organization, the rationale to
>                 remove caps seems even less
>
>                 unclear than it would be, for say, Verisign. Allowing
>                 the removals could very well be
>
>                 opening Pandora’s box with other Registries then
>                 demanding removals too. Registries
>
>                 own all the extensions to their domain and lack of a
>                 price ceiling only enriches the
>
>                 revenue of, ultimately, the one owner leading to a
>                 bigger monopolistic situation than
>
>                 already is currently prevalent.
>
>                 Needless to say, I support NCSG’s comment too!
>
>                 Best, Kathy
>
>                 ----------------------------
>
>                 Proposed 2019 .ORG Registry Agreement
>
>                 2.10 Pricing for Registry Services.
>
>                 (a) With respect to initial domain name registrations,
>                 Registry Operator
>
>                 shall provide each ICANN accredited registrar that has
>                 executed the Registry-Registrar
>
>                 Agreement for the TLD advance written notice of any
>                 price increase (including as a result
>
>                 of the elimination of any refunds, rebates, discounts,
>                 product tying or other programs
>
>                 which had the effect of reducing the price charged to
>                 registrars, unless such refunds,
>
>                 rebates, discounts, product tying or other programs
>                 are of a limited duration that is clearly
>
>                 and conspicuously disclosed to the registrar when
>                 offered) of no less than thirty (30)
>
>                 calendar days. Registry Operator shall offer
>                 registrars the option to obtain initial domain
>
>                 name registrations for periods of one (1) to ten (10)
>                 years at the discretion of the registrar,
>
>                 but no greater than ten (10) years.
>
>                 (b) With respect to renewal of domain name
>                 registrations, Registry
>
>                 Operator shall provide each ICANN accredited registrar
>                 that has executed the Registry-
>
>                 Registrar Agreement for the TLD advance written notice
>                 of any price increase (including as
>
>                 a result of the elimination of any refunds, rebates,
>                 discounts, product tying, Qualified
>
>                 Marketing Programs or other programs which had the
>                 effect of reducing the price charged
>
>                 to registrars) of no less than one hundred eighty
>                 (180) calendar days. Notwithstanding the
>
>                 foregoing sentence, with respect to renewal of domain
>                 name registrations: (i) Registry
>
>                 Operator need only provide thirty (30) calendar days
>                 notice of any price increase if the
>
>                 resulting price is less than or equal to (A) for the
>                 period beginning on the Effective Date
>
>                 and ending twelve (12) months following the Effective
>                 Date, the initial price charged for
>
>                 registrations in the TLD, or (B) for subsequent
>                 periods, a price for which Registry Operator
>
>                 provided a notice pursuant to the first sentence of
>                 this Section 2.10(b) within the twelve
>
>                 (12) month period preceding the effective date of the
>                 proposed price increase; and (ii)
>
>                 Registry Operator need not provide notice of any price
>                 increase for the imposition of the
>
>                 Variable Registry-Level Fee set forth in Section 6.3.
>                 Registry Operator shall offer registrars
>
>                 the option to obtain domain name registration renewals
>                 at the current price (i.e., the price in place prior
>                 to any noticed increase) for periods of one (1) to ten
>                 (10) years at the discretion of the registrar, but no
>                 greater than ten (10) years.
>
>                 (c) In addition, Registry Operator must have uniform
>                 pricing for renewals
>
>                 of domain name registrations (“Renewal Pricing”). For
>                 the purposes of determining
>
>                 Renewal Pricing, the price for each domain
>                 registration renewal must be identical to the
>
>                 price of all other domain name registration renewals
>                 in place at the time of such renewal,
>
>                 and such price must take into account universal
>                 application of any refunds, rebates,
>
>                 discounts, product tying or other programs in place at
>                 the time of renewal. The foregoing
>
>                 requirements of this Section 2.10(c) shall not apply
>                 for (i) purposes of determining
>
>                 Renewal Pricing if the registrar has provided Registry
>                 Operator with documentation that
>
>                 demonstrates that the applicable registrant expressly
>                 agreed in its registration agreement
>
>                 with registrar to higher Renewal Pricing at the time
>                 of the initial registration of the domain
>
>                 name following clear and conspicuous disclosure of
>                 such Renewal Pricing to such
>
>                 registrant, and (ii) discounted Renewal Pricing
>                 pursuant to a Qualified Marketing Program
>
>                 (as defined below). The parties acknowledge that the
>                 purpose of this Section 2.10(c) is to
>
>                 prohibit abusive and/or discriminatory Renewal Pricing
>                 practices imposed by Registry
>
>                 Operator without the written consent of the applicable
>                 registrant at the time of the initial
>
>                 registration of the domain and this Section 2.10(c)
>                 will be interpreted broadly to prohibit
>
>                 such practices. For purposes of this Section 2.10(c),
>                 a “Qualified Marketing Program” is a
>
>                 marketing program pursuant to which Registry Operator
>                 offers discounted Renewal
>
>                 Pricing, provided that each of the following criteria
>                 is satisfied: (i) the program and related
>
>                 discounts are offered for a period of time not to
>                 exceed one hundred eighty (180) calendar
>
>                 days (with consecutive substantially similar programs
>                 aggregated for purposes of
>
>                 determining the number of calendar days of the
>                 program), (ii) all ICANN accredited
>
>                 registrars are provided the same opportunity to
>                 qualify for such discounted Renewal
>
>                 Pricing; and (iii) the intent or effect of the program
>                 is not to exclude any particular
>
>                 class(es) of registrations (e.g., registrations held
>                 by large corporations) or increase the
>
>                 renewal price of any particular class(es) of
>                 registrations. Nothing in this Section 2.10(c)
>
>                 shall limit Registry Operator’s obligations pursuant
>                 to Section 2.10(b).
>
>                 (d) Registry Operator shall provide public query-based
>                 DNS lookup
>
>                 service for the TLD (that is, operate the Registry TLD
>                 zone servers) at its sole expense.
>
>                 -------------
>
>                 Here’s PIR’s current pricing language, from its 2013
>                 agreement:
>
>                 Section 7.3. Pricing for Domain Name Registrations and
>                 Registry Services.
>
>                 7.3(a) Pricing. From the Effective Date through 31
>                 December 2013, the price to ICANN-accredited
>                 registrars for new and renewal domain name
>                 registrations and for transferring a domain name
>                 registration from one ICANN-accredited registrar to
>                 another, shall not exceed a total fee of US$8.25 (the
>                 "Maximum Service Fee"). Commencing on 1 January 2014,
>                 the Maximum Service Fee charged during a calendar year
>                 for each annual increment of a new and renewal domain
>                 name registration and for transferring a domain name
>                 registration from one ICANN-accredited registrar to
>                 another, may not exceed the Maximum Service Fee during
>                 the preceding calendar year multiplied by 1.10. The
>                 same Service Fee shall be charged to all
>                 ICANN-accredited registrars for new and renewal domain
>                 name registrations. Volume discounts and marketing
>                 support and incentive programs may be made if the same
>                 opportunities to qualify for those discounts and
>                 marketing support and incentive programs is available
>                 to all ICANN-accredited registrars.
>
>                  7.3(b) Adjustments to Pricing for Domain Name
>                 Registrations. Registry Operator shall provide no less
>                 than six months prior notice in advance of any price
>                 increase for domain name registrations and shall
>                 continue to offer domain name registrations for
>                 periods of up to ten years.  Registry Operator is not
>                 required to give notice of the imposition of the
>                 Variable Registry-Level Fee set forth in Section 7.2(c).
>
>                 ----------------------------
>
>                     Hi Milton,
>
>                     If my understanding of Section 2.10 of the
>                     Registry Agreement is correct, registrars can
>                     continue to renew existing registrations without
>                     an increase in price following an increase in
>                     pricing of new registrations by the Registry
>                     Operator (RO) for a period of up to 10 years.
>                     Additionally, ROs are required to have uniform
>                     pricing for registration renewals. This would mean
>                     that all renewal prices would remain unchanged,
>                     unless they all change across all registrars
>                     simultaneously.
>
>                     The protections for existing registrants referred
>                     to are detailed in 2.10c of the Registry
>                     Agreement. The protection is basically that
>                     registrants have to agree to renewal prices higher
>                     than that of the original registration at the time
>                     of the initial registration. It can’t be forced
>                     upon them at a later date. This is meant as a
>                     provision to /“//prohibit abusive and/or
>                     discriminatory Renewal Pricing practices imposed
>                     by Registry Operator without the written consent
>                     of the applicable registrant at the time of the
>                     initial registration of the domain“/.
>
>                     Thanks.
>
>                     Amr
>
>
>
>                         On Apr 25, 2019, at 9:30 PM, Mueller, Milton L
>                         <milton at GATECH.EDU <mailto:milton at GATECH.EDU>>
>                         wrote:
>
>                         I agree with the letter’s discussion of URS
>                         and other RPMs. I agree with Amr that we may
>                         need to moderate the language about
>                         “unilateral ICANN action” however because PIR
>                         may indeed have gone along with this.
>
>                         On the issue of price caps, I think we need
>                         some factual clarification. If Amr is right
>                         and the potential price increases only apply
>                         to new registrants, then there is much less of
>                         an issue. The proposed renewal says
>                         “Protections for existing registrants will
>                         remain in place, in line with the base
>                         registry agreement.“
>
>                         What, exactly, are those “protections for
>                         existing registrants”?
>
>                         MM
>
>                         *From:*NCSG-Discuss
>                         <NCSG-DISCUSS at LISTSERV.SYR.EDU
>                         <mailto:NCSG-DISCUSS at LISTSERV.SYR.EDU>>*On
>                         Behalf Of*Amr Elsadr
>                         *Sent:*Thursday, April 25, 2019 10:33 AM
>                         *To:*NCSG-DISCUSS at LISTSERV.SYR.EDU
>                         <mailto:NCSG-DISCUSS at LISTSERV.SYR.EDU>
>                         *Subject:*Re: [Urgent] [Public Comment]
>                         Proposed Renewal of .org Registry Agreement
>
>                         Hi,
>
>                         Thanks for sharing this, Rafik. Speaking for
>                         myself, I very much agree with the comment on
>                         adding the new gTLD Rights Protection
>                         Mechanisms (RPMs) to the PIR contract for .org
>                         at this time. As the draft comment rightly
>                         points out, these RPMs will not actually be
>                         Consensus Policies until after the ICANN Board
>                         adopts the recommendations of the Review of
>                         all RPMs in all gTLDs PDP Working Group, and
>                         should not apply to any of the legacy gTLDs,
>                         including .org. However to characterize the
>                         decision to do so as a unilateral ICANN
>                         decision is something I’m not sure of. I
>                         presume that PIR negotiated this with ICANN
>                         before the public comment period began? I
>                         might be wrong, as I’m making an assumption here.
>
>                         To be clear, the RPMs that would be applicable
>                         here (if I’m not mistaken) are the Uniform
>                         Rapid Suspension (URS) and the Trademark
>                         Claims RPM (part of the Trademark Clearing
>                         House), but not the Sunrise Registrations RPM,
>                         obviously, since .org has been around for a while.
>
>                         Substantively, I don’t believe the URS will be
>                         much of an issue, since it is largely deemed
>                         to be an unappealing mechanism for use by
>                         Trademark holders, as the stats and anecdotal
>                         evidence that has been shared to date
>                         indicate. The impact of Trademark Claims, on
>                         the other hand, might be very different, and
>                         prior to it being reviewed by the RPMs PDP,
>                         and adopted as an ICANN policy, I don’t
>                         believe adding it to the .org contract in a
>                         renewal is a good move.
>
>                         On the second issue, where the draft comment
>                         disagrees with removing price caps for .org
>                         registrations, I’m pretty sure I don’t agree
>                         with the rationale or conclusion. I don’t
>                         believe PIR’s status as a non-profit entity
>                         justifies this. IMO, it imposes unreasonable
>                         obligations on PIR that other Registry
>                         Operators are not subject to, so effectively
>                         penalizing PIR for its status, and its
>                         continued mission to/“support many excellent
>                         causes”/, as pointed out in the draft.
>
>                         Furthermore, there is little to no evidence
>                         that I can see (at least in the draft) that
>                         registrants of .org domain names will be
>                         negatively impacted by removal of the price
>                         cap. My understanding is that this will mainly
>                         impact new registrations, not existing ones,
>                         but this isn’t addressed at all.
>
>                         To me, PIR needs to set its own price taking
>                         in to consideration their own consumer base.
>                         If they make bad decisions that drive their
>                         customers away, I don’t believe this will
>                         negatively impact registrants as much as it
>                         would PIR itself, especially considering that
>                         there are over a thousand gTLDs for
>                         registrants to migrate to, should they choose
>                         to do so.
>
>                         Thanks.
>
>                         Amr</o
>
>     -- 
>
>     Kathy Kleiman
>
>     Visiting Scholar, Center for Information Technology, Princeton University
>
>     President (on leave), Domain Name Rights Coalition
>
>     Image removed by sender.
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>
-- 
Kathy Kleiman
Visiting Scholar, Center for Information Technology, Princeton University
President (on leave), Domain Name Rights Coalition



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