All,

 

On the call today, Susan raised a good point about applicants that get Applicant Support trying to “game the system” by immediately flipping their registries to a third party to make a profit.  Although we would hope that those that take the time to go through the Applicant Support Program (ASP) and get approved would alone demonstrate that this is unlikely to happen.  The process to get support is supposed to be vigorous and try to root out potential gaming.  That said, I worked with Susan to draft the following language.  Would this be acceptable as a Recommendation?

 

“If the Applicant getting Applicant Support prevails in an auction, there should be restrictions placed on the Applicant from assigning the Registry Agreement, and/or from any Change of Control for a period of no less than five (5) years.  This restriction is in place to prevent gaming of the applicant support program whereby an applicant immediately transfers its ownership of a registry to a third party in exchange for any form of financial gain.  However, legitimate assignments (e.g., changing of ownership due to death or retirement, etc., assignments to subsidiaries, etc.).  All assignments must have ICANN's consent, which consent may be reasonably withheld. In the event of a change of control after the first five (5) years but during the remaining first term of the registry agreement, the applicant should be required to repay the financial support that they received.”

 

Note:  We would add this to Agreements for all that get Applicant Support, not just those that prevail at an auction (with the multiplier or other form of bid credit).

 

Discuss………..

 

Jeff Neuman

Senior Vice President 

 

Com Laude | Valideus
1751 Pinnacle Drive

Suite 600, McLean

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M: +1.202.549.5079

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E: jeff.neuman@comlaude.com
www.comlaude.com


 

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