New gTLD Program Status Monday, 14 March 2011 ICANN Meeting San Francisco, California. >>KURT PRITZ: Welcome, everyone. We're going to start in just one minute, okay? Thanks. Okay. Can we call the meeting to order? Anthony? So this morning Rod talked about using social networks to promote the goodness of his tie and I just wanted to advocate briefly for my tie. See if I could do any good. So it has a lot to recommend it. I bought it as an emergency action so I bought it from a store that was much too expensive. I'll never have a tie this expensive again, and, you know, it's understated but yet bold. So if anybody wants to advocate on my tie's behalf, that would be great. So what is the applicant guidebook? I think we all know but I want to use this slide for a little bit different purpose. The applicant guidebook is the product of the ICANN model at work. The work of many stakeholder groups. And I think it's one of the themes here, is that this exercise for new gTLDs and IDNs and some similar exercises have really effected a paradigm shift in the ICANN community, and that is the ability of our policymaking community to meet in working groups and work on very difficult problems and develop timely, meaningful, and substantial work product in an amazingly short period of time. And, you know, we've all said these letters over and over again and we speak in letters, but we formed the IRT, the STI, the HSTLD, the JIG, the JAS, the STI working group, the IDN working group, the arcanely named Rec6 CWG, and they all delivered very complex positions on difficult issues, and that's what's really remarkable about ICANN and really remarkable about the guidebook, that it reflects this work that was difficult, yet done in a really short period of time. And part of the theme for this discussion, too, is now enter the governments, right? So the guidebook reflects significant input from the governments. It's not that the GAC or other governments haven't been listened to, big sections on geographic names, but now the governments, through the Governmental Advisory Committee, is working very hard to work for compromises and completely understand complex issues with regard to rights protection and protection of names and the effects of different jurisdictions and the arcane definitions of community TLDs and others, and have contributed significantly over the last couple months to the guidebook. And so that sort of completes for us, I think, this paradigm shift in ICANN that we've created -- we've not created but we've affirmed that ICANN's a place where governments can effectively affect Internet policy. So that's the first bullet. So we've got a ways to go. What is the guidebook? It's a roadmap for those who want to apply for a new gTLD. So it's like getting all the test questions months before you have to take the test. So you should pass, and so it's not meant to be a block to your application and everyone fully understands that. We can hire consultants to fill out the applicant guidebook questions, but what's important, I think, is that the guidebook and the questions there are meant to be a guide for people that aren't fully aware yet that, "Here's what it takes to competently run a registry that's stable and resilient." So it's meant to help prospective registry operators become viable, stable registry operators after they apply. So it's a -- it's intended to guide that building of a resilient, stable registry. And it's also meant to be advice for those who are not going to apply, but also want to take advantage of the upcoming opportunities or make sure they address the risks. So that could be, you know, registrants or other users. The guidebook is long but clear. So the current guidebook's about 80,000 words, and here's why I say that. The first version of the guidebook was 40,000 words. So when people talk about our community being able to participate effectively in this process, the guidebook's changed from 40,000 words to 80,000 words, pretty much based on the community input to it. New sections on trademark protections, new sections on protections for geographic names. Of those 80,000, only 20,000 of the -- of the original words are left. So quite a remarkable amount of change. And a lot of those words are, you know, "of" and "the" so they don't really matter anyway. And the germane sections of the guidebook are short, so here's how -- you know, everybody knows this but it's important to reintroduce it, that the guidebook's laid out and how you apply for a new TLD and how it's supposed to address different issues. So module 1 is, you know, who can apply and how much money you have to pay and that sort of thing. And then the most germane section is Section 2, so of all this 80,000 words, you know, just this much (indicating), you know, is module 2. So this is the stuff you have to pay attention to if you want to apply for a guidebook. And then the rest of the guidebook is intended to resolve disputes that arise through this process. It's meant to address all those lessons learned we got from the preliminary rounds in 2000 and 2003. So, you know, what if there is an objectionable string? What's the path for that? That's in module 3. What if two entities apply for exactly the same name, how do we resolve that? That's in module 4. Once you pass your evaluation, how do you get a contract signed and get delegated in the root. That's in module 5. So I just wanted to take a chance to reiterate that because we tend to look at the guidebook as a great big monolith now, and not as its component parts, which I think have been, you know, clearly delineated. And then I also just want to take a chance to reiterate the opportunities and the benefits we're going to see, we anticipate in new gTLDs, to encourage these new opportunities. And especially opportunities for those other than applicants and registry operators. Even if we get 500 applications, that will be, you know, 500 entities running registries and billions of people across the world that can benefit from this new domain space, so the real opportunity and benefit we see is to those users and registrants. Particularly those who might use IDNs and be able to communicate in their own language. And then the other goal -- another goal of the program is to protect -- provide a safe environment for those users, for trademark holders, so it has measures to mitigate malicious conduct and protect trademarks. It's meant to provide, at the end of the day, a safer environment than what exists now. This is the part where I'm going to try to convince you that there's been benefits to this long, long discussion we've had about new gTLDs. It has taken a long time. I think every time, every iteration, we do make the benefits of the program more concrete and we minimize the cost to others more effectively. Another benefit, it's like -- you know, it's kind of like war, right? You fight a war, you make a bunch of new inventions and there's a bunch of side benefits to war. So in this conflict we're having now, you know, these benefits I'm talking about are the benefits of a -- of a vibrant, nimble, community that can create new policy very quickly and effectively. And I think that's been a benefit of this, and it's something I talked about earlier. Lately now we're establishing a clearer role for the government, so the governments are not merely conveying opinions or broad opinions, but they are actively involved in the policy -- detailed policy discussions that are important in order to launch this process, and it's very important to take, as you know -- it's very important to take into account the concerns of governments as we launch this. It's very important for ICANN to provide an effective place for our governments to participate. I think ICANN has always been that in the past. I think what we've experienced over the -- over the past days between the Cartagena meeting and now is a little bit remarkable and reaffirms for us what that role of governments is. So it's really putting -- you know, I think at the end of the day, we've reaffirmed and put the ICANN model to work. So there have been 54 -- 54? -- 54 working days since the Cartagena meeting. There were 39 working days between the Cartagena meeting and the publishing deadline for this meeting. So what got done between then and now? Well, one thing that didn't get done is the publication of a new guidebook, which is why this presentation is somewhat abbreviated. So that's your good fortune. But it also didn't make sense to publish a new guidebook, given the discussions that are occurring between the board and the GAC right now. Changes are being made to the -- substantive changes will be made to the guidebook as a result of those discussions, and it didn't seem appropriate to publish a guidebook without taking into account the full advice of the GAC, which that advice-receiving will continue at this meeting and we'll talk about that a little more. But what happened since the last meeting in -- ICANN's last meeting in Cartagena? We had the GAC consultations. I'll talk about them a little more, but a lot of work went into them. We closed public comment sessions on the last version of the guidebook, on the joint applicant support working group report, two economic studies and root zone scalability study. So when we close public comment, that's accompanied by a form of analysis that says, "Well, here's the comments, so here's how the guidebook can accommodate it. We can change the guidebook in certain ways or we're not going to change the guidebook and here's why." So there -- that's sort of the synthesis of getting from the comment period to the -- comment period to the next version of the guidebook. And I'll talk a little bit about potential changes for the next guidebook in a minute. There's a lot of other work that took place since Cartagena. We launched an IDN variant project team which I'm going to talk about in a little while. The board published its rationale for its position on vertical integration, so in new gTLDs right now, restrictions are relaxed for registries and registrars being co-owned by the same entity. The board, in increasing the amount of detail and reasoning it publishes associated with each of its meetings, published rationale explaining why it made that decision. So that's a next step in the transparency work that ICANN's undertaken. As part of its routine publication of the minutes from the last meeting, it will publish shortly the rationale for the decision to not undertake further economic studies. So that's done, too. The high-security TLD team issued its final report. That's not how you spell "briefing." The -- at the board's direction, a briefing was furnished to the GNSO about this sort of esoteric issue where if you're a community TLD and you want to change your charter or change your community representation or change your registration restrictions, how -- under what circumstances can you do that. Because you've signed up to be a community TLD with these restrictions. So a procedure is needed for that, and a briefing has been provided. A lot of planning has gone into the communications plan, how we're going to communicate across all regions that the new gTLD program launch is imminent, with the idea that after the end of the first round, no one will raise their hand and say, "Gee, I didn't know about this, I wish I did." While that's sort of an impossible goal, that's the aim in that communications plan. And then operational readiness. There's a team at work there at ICANN that is, one, getting ready to accept and process and evaluate applications; and, two, then service the new expanded domain space with all the new registries and all their new businesses associated with that. And I'll talk about that more in a minute. So -- but let's turn to the ICANN -- GAC/board consultations. What were the purposes of those? Well, you know, as the bylaws state, the board cannot disagree with the GAC unless there's a good-faith attempt at reconciling those differences. And I didn't say those bylaws words exactly right, so that's the gist of it and you can look up the real words. So if you're going to have a difference, you need to know how you're differing. So the first and primary goal of these consultations was to clarify what those differences are. A statement that -- for example, that the GAC is against a way of doing things isn't enough to say there's a difference, or if the GAC were to say, "You need to do more for trademark protection or more to mitigate malicious conduct," there's not enough there to hang your hat on, to say we're differing if the board decides, "We're done." And so the purpose of those is to provide clarity on those differences. And then once you have that clarity, then you can have a negotiation about -- reach an accommodation or agreeing to disagree or just some sort of compromise. So the two purposes were to achieve clarity and what the differences are, and I think a good job was done, and then, you know, working towards -- working towards common ground on a lot of the differences. You know, a ton of work went into that consultation. There were -- it's all posted, but there were preliminary briefing papers. The GAC scorecard is sort of a remarkable document, and with great specificity outlines all the subissues associated with the 12 areas where they would like to see changes in the policy. There were a set of informal pre-calls between board members and GAC members to try to get clarity as to what those differences were, so when they got to Brussels they could hit the ground running. They -- there were two full days of consultation that turned into three. They were having such a good time. [ Laughter ] So, in fact, there was -- the plan was for the two teams to meet separately, but headway was being made and they decided to meet again on the third day to discuss issues further, and the next steps. So good after-the-meeting notes on the scorecard were published where -- with some more clarity. The 12 issues were subdivided into 80 subissues, and then the board published what its position was on each of those 80 issues, and then, you know, assigned each one a score. So it developed that methodology, if you're familiar with it, of, you know, scoring things a 1A or a 1B, whether there was complete or substantial agreement, or a 2 if the board chose to still disagree. So I just -- the next slide -- this slide, it used to be the next slide but now it's this slide -- lists the GAC scorecard topics and I'm just going to flash that up there but I'm not going to make you listen to me read it. And then it's also posted, so it's memorialized for all time. And we're going to talk more about these in the session this afternoon. So are we closer? After all that work, what the board notes indicated, anyway, is that the board thinks that the guidebook's -- the board is going to direct some changes be made in the guidebook and after that the guidebook will be consistent with GAC advice on 25 of those issues, be consistent in principle with 28 of the issues, meaning that there's some revision still to be made, and that the guidebook's not consistent with 23 GAC issues that the board and GAC, as of right now, continue to disagree. If you add those up, it doesn't add up to 80. That's because there are a couple TBDs in the -- there are a few TBDs that the board didn't know how to assign scores to. So, you know, there's a lot of -- there's a lot of -- you know, you can look at that a couple ways, but substantial agreement on two- thirds of the issues where we thought there were differences is pretty darned good. But then there's 23 issues where there's difference. The other way to look at it is there's 28 issues where there are essentially offers in compromise. You know, not quite full GAC agreement. So the additional consultation this week is meant to get at these -- the 23 areas of difference, and then assure the 28. And so I want to flag for everybody one of the concerns and one of the -- not a concern the board has, but one thing the ICANN board wants to make sure of is that in these next set of consultations, there's agreement as to this scoring, right? It's the board's scoring. So part of this is when you're working with another party, make sure that the other party's nodding and agreeing with you when you make a statement like this. So part of that consultation is to get a meeting of the minds on this sort of scoring. So what's going to change in the process as a result of the -- as a result of the meeting with the GAC? Well, governments want a way to -- for public policy reasons to be able to give advice on TLD applications directly to the board, and so the board discussed creation of a procedure for the GAC to give advice directly to the board on gTLD applications. So that the GAC does not have to pay for an objection and go through the objection process. There's got to be some prerequisites to that, right, and this session afterward, you might want to comment on this, if we get to it, or in the session on Wednesday. You know, there has to be some transparency about which countries are objecting. There has to be some methodology to a GAC consensus position that, you know, the GAC is against an application for any reason. So if there is a procedure for the GAC to give advice directly to the board, there have to be some safeguards there. You'll also see the implementation of an early warning procedure. So those of you familiar with trademark protection, sort of an IP claim where a government can signal to an applicant that this string being applied for is sensitive for some reason in that nation, and that the applicant should be aware of that. Other changes are that GAC and possibly ALAC should be able to object without paying the dispute resolution fee. So again, there needs to be procedures wrapped around, you know, an ALAC objection, for example, being a consensus position in a group that's made up of diverse interests. Some streamlining to the URS is in order. The clearinghouse can be expanded so that it can include other kinds of rights other than trademark rights, with the understanding that registries still are only obligated to honor registered trademarks, and depending on whether you're using IP claims or a sunrise process, the trademarks the registries would have to honor would be different, but inclusion of other types of names in the clearinghouse, better definition about what our commitments are regarding root zone stability, what kind of monitoring will ICANN do of the root zone or listening to monitoring that others do. How will it ensure the root zone is still operating stably before launching a second round. And then with regard to economic studies, in their verbal presentation or oral presentation in Brussels, the GAC said they'd like to see questions on the application regarding the perceived benefit and cost mitigation measures that the registry was implementing for the purpose of evaluating how effective and accurate those are, after the first round. So collect information in the application, and then after the first round, do an economic study in order to ascertain -- you know, in order to gain some intelligence over what's in applications versus what really occurs afterwards. So at this meeting, there's going to be two types of sessions with the GAC, and, you know, as you know, the meeting schedule has been turned somewhat topsy-turvy in order to accommodate this, but the board and the GAC and many of you interested in new TLDs think this is very important and are willing to devote the time to this, so the board took the move of changing the schedule somewhat radically. And so there's two types of sessions. One is the ICANN board/GAC consultation, and that's going to be essentially a continuance of what happened in Brussels. In other words, they're going to build on the work that was done in Brussels to try to get to closure on more issues. So that is open for observation, but for everyone here, that's attended a board/GAC meeting at any meeting, it's the board talking, the GAC talking, and that's about it. So those are going to be full-day sessions on Tuesday and Thursday. And then just so you know, on Thursday the public forum, the regular public forum, is going to follow directly after that. Those sessions can be informed, though, by what the rest of the community says here, so there is a session right after this, at 3:00, and another one on Wednesday, to afford the community to offer opinions on the work and on specific issues that the board and the GAC have considered. So the board, for example, would like to hear this afternoon on the issues marked a 2, what do you think. Do you think the GAC's right, do you think the board's right, what should -- you know, what should -- what should the result of that be. The board is looking for input. After going through the 2s, the next -- the next go would be to go through those issues labeled 1B, where we're close but there's not a precise agreement, so you'll see in this Monday session, you'll see board leads on the stage. You'll see GAC members here participating in that discussion. On Wednesday, I don't know if the GAC members are going to participate yet or not. It seems not because they have some business they have to get done, and Wednesday's a big day for them to do that. So those are the two types of sessions that are going to occur this week about that. So there's other stuff going on with the guidebook. Guidebook amendments are being written in response to other inputs. The IDN variant project is underway. The joint applicant support group, their work continues, so they're working on a model to develop sources of funds, and then ways to allocate funds to potential applicants. The high-security TLD team issued its final report to guide further work in the creation of TLDs where users might expect higher security. And then I already talked about this GAC briefing process. So some of the -- some of the amendments you'll see in the next version of the guidebook will be some changes to trademark and malicious conduct protections, a change to the community dispute resolution standards. That's been a very hot topic for a very small area of the community. Excuse me. And some improvements to the registry agreement that make it -- make requirements more effective -- what am I looking for? Like SLA requirements, more effective and -- but without being costly for TLDs to measure. The Rec6 working group, the group that considered morality and public order standards finished its work in the last meeting, right, in Cartagena. Was that right? And you will see some changes in the guidebook with regard -- as a result of that work, the ability of the GAC and the ALAC to object, some changes in the discrimination standard and what used to be called morality and public order standard, and some clarification of the GAC/board role. Right now the board is not getting involved in individual TLD applications, but you just heard me describe a possible role where the GAC might provide advice directly to the board. And then there will be more changes as a result of these GAC consultations. So just a few plugs is that one thing the board is asking ICANN -- has asked ICANN staff and the community to take on very urgently is work around IDN variant management and the ability to delegate variant TLDs, which is very important for users in some areas where there are variant characters. And the ability to use IDNs is dependent on delegating these IDN variants. So Core Project Team has been held. There is a session -- I am going to tell you when the session is in a little while, but a very intensive project has been undertaken. The community is being solicited for volunteers. ICANN is investing quite a bit of money on this. I think there is 1 or $1.5 million, a supplemental budget allocation, to resolving this issue with the goal that it get resolved in time to delegate variant TLDs in the first round. And what we're doing is conducting five case studies. So variant management issues get really complicated very fast because you talk about delegating Arabic variants and then somebody will say, Well, what about the Chinese case? That won't work. And it comes up the whole discussion. That's my opinion anyway. Instead, we are undertaking five separate case studies in five separate scripts to understand the issues associated with delegating variants in those scripts and then resolving them. That work will start in earnest with the community. A project plan has been posted, and the project work will start in earnest with the community starting in the session Wednesday afternoon. And that group should draw to a close this calendar year. I talked a little bit about operational readiness, so we are getting ready to process applications. We have an application -- a Web-based application system that is in beta test right now. Deals are being negotiated with service providers that will hire the panelists that will do the evaluation. So the announcement of those firms will be made before or at the Singapore meeting and we've established or are establishing a customer support function that is multiregional and multilingual. And then also, as you know, it is very important for ICANN to augment its compliance, its registry liaison, its IANA staff; and there are staffing plans in place to do that. And actually now there's -- because we're talking about a new budget, we're actually furnishing budget for those things. So if it's helpful to you, it is getting real for ICANN because we're budgeting for doing that. So you can look this up later, but there's a lot of sessions that are related to new gTLDs at this forum. One is the JIG, the Joint IDN working group, is meeting today. There is these four GAC consultations. There is the IDN variant management session on Wednesday, and then also there's the public forum. So I encourage you to participate in all of those. So what's the process for closing? So as you know, I'm not able to show you a timeline. I think what we want to do, two things, right? We want to urge the board and the GAC to close on their discussions and settle on areas of agreement and disagreement, but we don't want to get in the way of that either. So we want to -- if you are not involved in that, you want to say what you want and then facilitate that discussion and be supportive in any way you can. At the end of this week, there's -- the board is going to get a heck of a lot of input this week. And at the end of this week, we will be looking for them to provide a vision for how we're going to close the GAC consultation process, how we're going to address the remaining public comment and publish the next guidebook. So I think, you know, as I walk into this room each ICANN meeting, I get an increasing number of jokes about giving the same presentation over and over again, but there is a difference in each one. And certainly this one is that through this new gTLD process, we've all been part of a change of -- we've been part of a metamorphosis of ICANN changing into a body. Even though this has taken a long time, our policy developments have become more nimble. And even governments are becoming nimble and providing policy advice to ICANN. And so it's our goal then -- our goal to help them bring that to a close in any way we can and then launch the process. So I want to thank you very much for coming. The next session is at 3:00, and I can take questions between now and then, if you have any. Thanks. [ Applause ] Any questions? No questions? Hello, Amadeu. >> AMADEU ABRIL i ABRIL: I hope you don't feel too frustrated that nobody is asking you anything anymore. We still love you, Kurt. I'm Amadeu Abril i Abril, CORE, Internet Council of Registrars. Perhaps I was sleeping for five minutes, and I apologize for that. I think you mentioned you will discuss some parts that would change in the new version, and then I didn't got exactly what parts could still change. I have a concrete question regarding the evaluation to a carrier on the comparative evaluation or the community priority evaluation, which it is called now. We have tried to point out very often how equivalent in practice are things like name selection or registrant selection or use policy that in practice are used alternatively but in your evaluation always are given different and cumulative points so it makes in practice impossible to achieve 15, 16 for any real existing TLD today in any part of the world. And I would like knowing whether this part could be revisited or not. Thanks. >>KURT PRITZ: So in answer to your question -- first question, I did in a broad way discuss some of the changes that would be upcoming in the guidebook. But if you look at the board notes on the GAC scorecard that are printed in the third column, it describes all the changes so far that the board has directed be made as a result of the GAC consultation. >> AMADEU ABRIL i ABRIL: My question was if those were the only parts that would change. Sorry. >>KURT PRITZ: And then there's more. You will see some changes that aren't big, but you will see some changes in trademark protections and malicious conduct mitigations brought to us by experts that say, If you do it this way, it is really not going to be effective. You'll also see some changes in the registry agreement where registries have said what you're asking for is impracticable as far as an SLA. As a matter of fact, there is a meeting here -- I don't know if it has occurred yet -- to discuss those. You will also see some changes based on the Recommendation 6 working group study about the ability of the ALAC and the GAC to object. Karen, who is the primary author of the guidebook, does have a list. But as I go down that list, I see very few large changes and more slight midcourse corrections. Karla? >>KARLA VALENTE: Hi, this is Karla Valente from ICANN staff representing our remote participants. We have one question from Danny Young. Why haven't proposed policy changes been formally brought back to the GNSO for reevaluation? No specific example. >>KURT PRITZ: Okay. So, Danny, I hope you can hear me. I'm going to make a presumption about your question that those changes are changes due to the GAC work. But they could be other -- you know, my answer is that the board has been fastidious at ensuring that changes do not change or interfere with the original GNSO policy recommendations. And in cases where they do, say, the work of the IRT, they have sent that work back to the GNSO, to a working group to see whether, in fact, those changes changed the policy or not. There were some comments in the GNSO session that occurred Sunday that some of the members there appreciated the fact that the board did say no or have -- we disagree with the GAC on this issue because they didn't want to change the policy recommendations. So after this, we can talk. I feel like I'm talking to the ether. After this, we can talk and I want to hear your specific examples, and we can address that and discuss whether those are policy changes or not. Hi, David? >> DAVID MAHER: Hi, Kurt. David Maher, chair of the registry stakeholder group. Along with the other stakeholder groups, we received a letter from Peter Dengate Thrush involving the consultation and asking for speakers to be available. My question: The registry stakeholder group, like many others, counts on Tuesday as constituency day. And we really need that time to develop our position on the many questions that have been raised in the scorecard. We're not really ready to address those this afternoon. What should we do? Can we file a written statement later and have that taken into account? >>KURT PRITZ: So I think -- I'm not the one to speak for the board. But if I were, I would say two things. One is I would take advantage of the opportunity to kick off the session and say -- I don't know what the registry stakeholder group wants, but if it wants an extended, you know, board-GAC consultation or if it wants it brought to a close or if it wants this session to really focus on these issues, to help focus the session, not the substance but focus how people -- the things we talk about, I think it could be ready for that. And then I think, too, that you should say that the registry constituency or stakeholder group would offer a written comment on the specific issues. So I think Peter was looking for a very brief introduction to this session from the registry stakeholder group and its support of the process or where do you think this session should go. And then I think you should go and make your substantive comments on each of the 1s and 2s. I don't think Peter was looking for a stakeholder group position on each topic. >>DAVID MAHER: Thank you. >>KURT PRITZ: I said that three times trying to get it right each time, but I'm not sure I did. Thanks. >>DAVID MAHER: Thanks. >>KURT PRITZ: Is that all? Okay, terrific. So we're going to get the board members and others set up here for a 3:00 start. And I think it is going to be a very good session so y'all come back. Thanks very much. [ Applause ]