[ga] Advantages to Option B

["Gomes, Chuck" <cgomes@verisign.com>]

The following is Chuck Gomes' personal opinion and is not presented as a
VeriSign position.  References to agreement sections are provided in
parentheses; 'com' refers to the new .com agreement; 'new' refers to any of
the new agreements for .net, .org or the new gTLDs; 'net' refers
specifically to the new .net agreement; 'org' refers specifically to the new
.org agreement; and 'old' refers to the existing agreements for .com, .net
and .org.

Option B Advantages to ICANN &/or the Internet Community:

1. 10-year $200M investment in research and development and infrastructure
to increase the efficiency and stability of the .com, .net and .org
registries and the ability of ICANN accredited registrars to access those
registries (Sclavos letter to Cerf)
2. $5M contribution for the creating of a new .org registry (Sclavos letter
to Cerf)
3. Terms for VeriSign financial support to ICANN in the .com, .net and .org
agreements are modified to be the same as that for the new gTLD registries.
Not only does this result in a replacement of the old fee caps but it also
allows ICANN to greatly simplify its fee collection structure so that all
fees are collected through registries instead of through both registries and
registrars.  This adds additional responsibility to the VeriSign Registry
while at the same time reducing fee collection costs and increasing
efficiency for ICANN.  (com-II.7; new-3.14; old-6)
4. In addition to continuing the 'fire-wall' requirements in the old
agreement, the NSI Registrar must become a separate corporate subsidiary of
VeriSign. (com-II.23, new-23, old-21)
5. The .net and .org agreements become essentially the same as the new gTLD
agreements with the exception of the term and any clauses specifically
related to the gTLDs themselves.  Note: In my opinion, these terms are
definitely less favorable to VeriSign.
6. VeriSign will lose the .org TLD at the end of 2002, five years earlier
than under the existing agreement, assuming the 4-year extension after the
separation of the Registry and Registrar.  (org-5, old-23)
7. The .net TLD will be re-competed at the end of 2005, 22 months earlier
than under the existing agreement, assuming the 4-year extension after the
separation of the Registry and Registrar.  (net-5, old-23)
8. The termination clause in the .net and .org agreements is expanded to
include several additional causes for termination.  (new-5.4, old-23)
9. The new .org registry will be allowed to use VeriSign Global Registry
Services gTLD server constellation for free for one year and thereafter, if
the new registry so desires, at a price to be determined.  (org-5.1.5)
10. In the new .net and .org agreements, the list of possible topics for
specifications and policies is expanded.  (new-4.2; old-3.C)

Whereas some may want to debate whether or not some of the above are clearly
advantages to the Internet community at large, in my opinion, they are all
advantages to ICANN and are all 'take-aways' for VeriSign.  In trade for
these 'take-aways,' which I think are very significant for VeriSign,
VeriSign is given a clearer procedure for renewal for the .com registry
(com-II.25) and the requirement to divest of the Registrar is removed if the
Registrar is made a separate corporate subsidiary (com-II.23.C).

As already stated at the beginning, the above is based on my personal
analysis of the old and new agreements.  (That analysis was primarily done
in route to and from Melbourne.)

P.S. - For those who are concerned about rights to data in the new
agreements, please read the following sections: com-II.12, new-3.13,
old-10).

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