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Subject:
From:
Kathy Kleiman <[log in to unmask]>
Reply To:
Kathy Kleiman <[log in to unmask]>
Date:
Sun, 5 May 2013 13:55:31 -0400
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I find what Timothe is saying in this discussion be be very relevant and 
insightful.  I agree with his positions, and what we should be asking 
ICANN to do on behalf of Registrants.

Kathy

:
>> Basically, if i understand, ICANN can do so because all vendors do so.
> Almost.  All vendors TRY to impose this clause.  The bigger the 
> customer, the more symmetric the relative power, and the more likely 
> the vendor will have to compromise.  The clause would never survive 
> negotiations in, say a line of credit from Megabank to Megacorp, or 
> for Megacorp agreeing to use a business-critical cloud service.
>
> I suspect that ICANN's attorneys (or perhaps staff who come from a 
> business background) are doing this because they view the relationship 
> between ICANN and the registries as analogous.  And that's what 
> experience trains attorneys to do, and business managers to support.
>
> This is not black and white.  Both parties have legitimate concerns.  
> As for us: *We* WANT ICANN to have the ability to impose changes on 
> the registrars when we discover issues mid-contract and persuade ICANN 
> to act.  But we support a process (bottom up consensus, transparency, 
> agreements are stable, staff don't make policy) that's different from 
> what the Verisign letter alleged/exposed.  And we should recognize the 
> legitimate business concerns of the registries (including for 
> predictability) that are causing them to push back.
>> Registries, if they don't sign the RA, are showing us what we could do.
> Regardless of what the registries do, we should be arguing for ICANN 
> to force terms in registrANT agreements that are more reasonable for 
> registrants.  We aren't technically a party to the registry/ICANN 
> agreement - except to the extent that NCSG is a part of ICANN, and 
> therefore ICANN should be representing us.  And what we can get for 
> registrants is limited by what ICANN agrees with the registrars.  So 
> we should be concerned about the indirect effects.  As I previously 
> noted, the "registrant rights and responsibilities" discussion seems 
> like a suitable vehicle for this discussion.
>
> If we don't succeed in establishing registrant rights, every time we 
> (and the people this group represents) register a domain name, WE are 
> (by default) agreeing to "contracts that allow the other party to 
> unilaterally change the terms."  Without effective notice.  Putting a 
> revised set of terms on a website that we visit only to renew doesn't 
> count.  And as I noted before, they're not even obliged to (and never 
> do) redline differences.  So you have to be very persnickety 
> (obsessive with a lot of free time) to discover what your new 
> obligations are.
>
> If we do succeed - we will want ICANN to force the 
> registries/registrars to adopt those rights.  So it would be wise not 
> to declare the ICANN position in the registry/ICANN dispute as 
> entirely wrong.  I agree with Verisign that the process they described 
> is not acceptable.  I agree with ICANN that the power to amend the 
> agreement is essential.  I am not informed enough to take a position 
> on whether Verisign's description is accurate, or whether their 
> 'compromise' language is the right balance for our interests.
>
> I hope this helps.
>
> I should add the obligatory disclaimer.  I'm not an attorney and this 
> isn't legal advice.  It's my opinion, illuminated by many years of 
> dealing with them on various contractual matters.
>
> Timothe Litt
> ACM Distinguished Engineer
> --------------------------
> This communication may not represent the ACM or my employer's views,
> if any, on the matters discussed.
>
> On 05-May-13 12:44, Avri Doria wrote:
>> Thanks so much for pointing this out so clearly.
>>
>> Basically, if i understand, ICANN can do so because all vendors do so.
>>
>> Registries, if they don't sign the RA, are showing us what we could do.
>>
>> avri
>>
>> On 4 May 2013, at 05:30, Timothe Litt wrote:
>>
>>>> It is unimaginable for a party to sign a contract which allows the
>>>> other party to unilaterally change the terms of the contract.
>>> One might think so.  One might even wish it were so.  But it happens 
>>> every day.  You probably clicked-through such language many times 
>>> when signing-up for on-line services.  Attorneys automatically 
>>> include these provisions in every draft and try to minimize what 
>>> they give up in negotiations when they are noticed - when they have 
>>> to negotiate.
>>>
>>> Your credit card agreement includes such language.  So do the terms 
>>> and conditions of on-line retailers, ISPs - and yes, registries - 
>>> virtually every persistent consumer agreement in the US.  Quite 
>>> frequently, they don't even bother to give you notice of changes - 
>>> "you must keep checking the website for changes to these terms and 
>>> are deemed to have consented if you keep using the service after we 
>>> post the change."  Unless some consumer protection law requires 
>>> proactive  notice.  Usually the only recourse is 'if you disagree, 
>>> you can stop using the ' (card, service, website).
>>>
>>> Of course, this is always asymmetric.  The party with power 'must 
>>> have the flexibility to deal with unexpected circumstances' and 
>>> can't be bothered to deal with each individual consumer.  But 'my 
>>> employer went out of business so I need to reschedule payments until 
>>> I get a new job' isn't in the agreement because consumers have no 
>>> leverage.
>>>
>>>  From the point of view of the provider, this is actually quite 
>>> understandable.  Just imagine a bank having to negotiate a new - 
>>> potentially different - signed agreement with every card-holder 
>>> every time the interest rate changed.  Or a registrar having to 
>>> negotiate with every domain name holder when a new abuse scheme is 
>>> developed...  A provider can't afford to deal with each consumer - 
>>> at the prices we demand for services.
>>>
>>> This isn't to say that providers are necessarily evil.  We generally 
>>> rely on their being reasonable in how they apply their power.  Of 
>>> course absolute power does tend to corrupt, absolutely.
>>>
>>> When the power is more equal - e.g. two equally-sized corporations - 
>>> the attorneys will try for mutual written notice, provide a formal 
>>> change procedure, try to anticipate contingencies - in short, treat 
>>> each-other with some respect.
>>>
>>> I'm not defending the practice - I think there needs to be a 
>>> reasonable compromise between consumer protection and what's 
>>> practical for providers.  In part that means that groups like ours 
>>> need to aggregate the voices of constituents in these agreements. 
>>> See my recent comments on proactive notice to end-users in the 
>>> discussion about registrant rights and responsibilities...
>>>
>>> Cheer Verisign on if you like - the drafting process as presented in 
>>> that letter seems reprehensible.  But it is worth noting that if 
>>> Verisign and the registrars win this battle, the benefit will not 
>>> filter down to your agreement with them. Verisign will still put 'we 
>>> can unilaterally change this agreement' in the end-user agreement 
>>> for your domain name, and the use of their website.  And they won't 
>>> even notice the inconsistency - unless we say something.
>>>
>>> Timothe Litt
>>> ACM Distinguished Engineer
>>> --------------------------
>>> This communication may not represent the ACM or my employer's views,
>>> if any, on the matters discussed.
>>>
>>> On 04-May-13 00:00, Horacio T. Cadiz wrote:
>>>> On 05/04/2013 05:10 AM, Robin Gross wrote:
>>>>> Powerful comments from Chuck Gomes & Verisign about the proposed 
>>>>> Registry Agreement and ICANN's lack of good faith in the 
>>>>> negotiation process:
>>>>> http://forum.icann.org/lists/comments-base-agreement-29apr13/msg00002.html 
>>>>>
>>>>   It is unimaginable for a party to sign a contract which allows the
>>>> other party to unilaterally change the terms of the contract. Then 
>>>> again,
>>>> as Gomes pointed out, ICANN is on top of a pile of money (USD 350m)
>>>> and can afford to wait the applicants out.
>>>>
>>>>
>>>
>
>

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