Re: [ga] How much will we get per DN?

["Michael Froomkin - U.Miami School of Law" <froomkin@law.miami.edu>]

It would be good to get a measure of the domain name tax, yes. 

On Tue, 17 Jul 2001, Jefsey Morfin wrote:

> The new TLDs are going to financially support the AmerICANN.
> I have a few questions:
> 
> - this is not related to any rendered servic? Just a support for its
>    educational, reasearch and charity endeavors. Yet it is billed
>    very precisely...  Looks very much like a tax to me?
> 
> - how much: I have enclose the text and I cannot figure out how
>    much that represent.
> http://www.icann.org/tlds/agreements/unsponsored/registry-agmt-11may01.htm
> 
> I think it would be great for us to know how much the AmerICANN
> will get per Domain Name. May be could we get a few pennies
> for the NonCom and the GA?
> 
> Jefsey
> 
> 
> 3.14. Registry-Level Financial Support of ICANN. During the Term of this 
> Agreement, Registry Operator shall pay to ICANN the following fees:
> 
> 3.14.1. Fixed Registry-Level Fee. Registry Operator shall pay ICANN a 
> quarterly Fixed Registry-Level Fee in an amount established by the ICANN 
> Board of Directors, in conformity with the ICANN bylaws and articles of 
> incorporation, not to exceed one quarter of the annual Fixed Registry-Level 
> Fee Cap described in Subsection 3.14.4.
> 
> 3.14.2. Variable Registry-Level Fee. Registry Operator shall pay ICANN a 
> quarterly Variable Registry-Level Fee in an amount calculated according to 
> a formula and method established from time to time by the ICANN Board of 
> Directors, in conformity with the ICANN bylaws and articles of 
> incorporation. The formula and method shall allocate the total variable fee 
> among all TLDs sponsored or operated under a sponsorship or registry 
> agreement with ICANN (whether the fee is collected at the registry or 
> registrar level) based on the relative size of the registries for those 
> TLDs. It shall be permissible for the formula and method so established to 
> do any of the following: (a) to measure the size of a TLD's registry, at 
> least once per year where feasible, by the number of names under 
> administration within the TLD by the registry's operator, (b) to deem the 
> number of domain names under administration within the Registry TLD to be 
> the number of Registered Names, (c) to provide for a deduction in computing 
> a sponsor's or operator's Variable Registry-Level Fee of some or all of 
> that sponsor's or registry operator's Fixed Registry-Level Fee, and (d) to 
> provide that the number of domain names under administration for the .com, 
> ..net, and .org TLDs is the number of second-level domains within those 
> TLDs. It shall also be permissible for the formula and method to consider 
> accreditation fees collected from registrars as a credit applied to the 
> Variable Registry-Level Fee for the TLD to which the fees pertain. Groups 
> of registries for two or more TLDs may, with the agreement of their 
> sponsors or operators and ICANN, agree to allocate the variable fee 
> collected from them in a manner not based on the relative size of the 
> registries within the group, provided that the combined variable fees 
> collected for all TLDs within the group is based on the combined size of 
> the registries in the group.
> 
> 3.14.3. Payments Must Be Timely. Registry Operator shall pay the quarterly 
> Fixed and Variable Registry-Level Fees within thirty days after the date of 
> ICANN's invoice for those fees. These payments shall be made in a timely 
> manner throughout the Term of this Agreement and notwithstanding the 
> pendency of any dispute between Registry Operator and ICANN. Registry 
> Operator shall pay interest on payments not timely made at the rate of 1% 
> per month or, if less, the maximum rate permitted by California law.
> 
> 3.14.4. Fee Caps. The Fixed Registry-Level Fee Cap shall be [depends on TLD 
> type: US$100,000 for unrestricted and US$80,000 for restricted] per year 
> until and including 30 June 2002; shall automatically increase by 15% on 
> July 1 of each year beginning in 2002; and may be increased by a greater 
> amount in the manner provided by Subsection 4.3 The sum of the Fixed 
> Registry-Level Fees and the Variable Registry-Level Fees due to be paid in 
> any year ending on any 30 June during or within one year after the Term of 
> this Agreement by all TLD sponsors and registry operators having 
> sponsorship or registry agreements with ICANN shall not exceed the Total 
> Registry-Level Fee Cap described in the following sentence. The Total 
> Registry-Level Fee Cap shall be US$5,500,000 for the fiscal year ending 30 
> June 2002; shall increase by 15% each fiscal year thereafter; and may be 
> increased by a greater amount in the manner provided by Subsection 4.3.
> 
> 3.14.5. Adjustments to Price. The maximum pricing for initial and renewal 
> registrations set forth in Appendix G shall be adjusted at the beginning of 
> each calendar quarter by adding, to the amount specified in that Appendix 
> (after adjustment according to Subsection 4.4) as the applicable annual 
> charge for initial or renewal registration of a domain name, an amount 
> calculated according to the following three sentences. For calendar 
> quarters in which the variable fee is collected at the registrar level, the 
> amount shall be US$0.00. For the first two calendar quarters during the 
> Term of this Agreement in which the variable fee is collected at the 
> registry level, the amount shall be four times the per-name variable 
> accreditation fee charged to registrars for the quarter beginning six 
> months earlier. For subsequent calendar quarters, the amount shall be four 
> times the quarterly Variable Registry-Level Fee reflected in the invoice to 
> Registry Operator for such a fee for the quarter beginning six months 
> earlier divided by the number of Registered Names that the invoice shows 
> was used to calculate that quarterly Variable Registry-Level Fee.
> 
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