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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">IMHO it is completely without merit as an anti-trust case.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">There is no sensible definition of the market that is monopolized, and the opening up of new TLD opportunities means that doZens of alternatives (.porn, .sex,
use your imagination…) could be available. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<pre><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">The complaint says, “The ICM/ICANN contract contains no price caps or other restrictions <o:p></o:p></span></pre>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">of any kind on what ICM can charge for .XXX registry services.”
</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">If this is illegal then nearly all other TLD registries, established and new, are going to be illegal.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">AFAICT this is an attempt by the incumbent porn websites to harass .xxx, now that the battle over its creation has been lost.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext"> NCSG-Discuss [mailto:NCSG-DISCUSS@LISTSERV.SYR.EDU]
<b>On Behalf Of </b>Nicolas Adam<br>
<b>Sent:</b> Friday, November 18, 2011 2:56 PM<br>
<b>To:</b> NCSG-DISCUSS@LISTSERV.SYR.EDU<br>
<b>Subject:</b> [NCSG-Discuss] Fwd: [ NNSquad ] Full Text of Manwin Lawsuit Against ICANN / ICM re .XXX<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I have some choice quote below. Any comment on the merit of Manwin's case?<br>
<br>
Nicolas<br>
<br>
-------- Original Message -------- <o:p></o:p></p>
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<p class="MsoNormal" align="right" style="text-align:right"><b>Subject: <o:p></o:p></b></p>
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<p class="MsoNormal">[ NNSquad ] Full Text of Manwin Lawsuit Against ICANN / ICM re .XXX<o:p></o:p></p>
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<p class="MsoNormal" align="right" style="text-align:right"><b>Date: <o:p></o:p></b></p>
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<p class="MsoNormal">Wed, 16 Nov 2011 23:42:20 -0800<o:p></o:p></p>
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<p class="MsoNormal" align="right" style="text-align:right"><b>From: <o:p></o:p></b></p>
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<p class="MsoNormal">Lauren Weinstein <a href="mailto:lauren@vortex.com"><lauren@vortex.com></a><o:p></o:p></p>
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<p class="MsoNormal" align="right" style="text-align:right"><b>To: <o:p></o:p></b></p>
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<p class="MsoNormal"><a href="mailto:nnsquad@nnsquad.org">nnsquad@nnsquad.org</a><o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><o:p> </o:p></p>
<pre>Full Text of Manwin Lawsuit Against ICANN / ICM re .XXX<o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre><a href="http://j.mp/vl0InX">http://j.mp/vl0InX</a> (Xbiz [PDF])<o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>Interesting Reading!<o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>--Lauren--<o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>######################<o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre> 51. Not only did the selection of ICM lack any market restraints, the <o:p></o:p></pre>
<pre>ICM/ICANN contract contains no substitute for such restraints (e.g., price caps) <o:p></o:p></pre>
<pre>such as those imposed by ICANN in other TLD registry contracts. In fact, the <o:p></o:p></pre>
<pre>terms of the ICM/ICANN contract bolster ICM's ability to engage in anti-<o:p></o:p></pre>
<pre>competitive and monopolistic practices in the sale of .XXX TLD registry services. <o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>"In particular and without limitation: <o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>(a) The ICM/ICANN contract contains no price caps or other restrictions <o:p></o:p></pre>
<pre>of any kind on what ICM can charge for .XXX registry services. ICM has <o:p></o:p></pre>
<pre>complete price discretion and no fetters on its ability to charge monopolistic prices <o:p></o:p></pre>
<pre>considerably higher than those which would exist in a competitive market. Such <o:p></o:p></pre>
<pre>higher prices raise costs for registrants and harm consumers through higher prices <o:p></o:p></pre>
<pre>and/or fewer choices. <o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>(b) The ICM/ICANN contract leaves ICM with broad discretion to <o:p></o:p></pre>
<pre>fashion and limit in a non-competitive, unreasonable manner the nature, quality <o:p></o:p></pre>
<pre>and scope of .XXX registry services it offers registrars and registrants. Such <o:p></o:p></pre>
<pre>restrictions raise costs and limit innovation, thus harming registrants and <o:p></o:p></pre>
<pre>consumers. <o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>(c) Under the terms of the ICM/ICANN contract, ICM may cancel the <o:p></o:p></pre>
<pre>contract at any time, and for any reason, on 120 days notice. By contrast, ICANN <o:p></o:p></pre>
<pre>may not terminate the contract unless ICM fails to cure adjudicated, material <o:p></o:p></pre>
<pre>breaches of its limited contractual obligations. Moreover, the ICM/ICANN <o:p></o:p></pre>
<pre>contract lasts for a minimum 10-year term, but "shall" be renewed perpetually <o:p></o:p></pre>
<pre>subject only to an ambiguous obligation to negotiate in good faith certain new <o:p></o:p></pre>
<pre>terms, none of which appear necessarily to provide registrant or consumer <o:p></o:p></pre>
<pre>protections. The unlimited term of the ICM/ICANN agreement permits ICM to <o:p></o:p></pre>
<pre>continue insulating itself from market restraints and from any threat of competition <o:p></o:p></pre>
<pre>in .XXX registry services. <o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>(d) The ICM/ICANN contract contains a provision which ICM contends <o:p></o:p></pre>
<pre>will preclude ICANN from approving any arguably competing TLD designated for <o:p></o:p></pre>
<pre>adult content, such as ".sex" or ".porn." This restriction limits future competition, <o:p></o:p></pre>
<pre>enabling ICM to bar the threatened entry of new market competitors. <o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>52. ICANN failed to take any reasonable contractual or other steps to <o:p></o:p></pre>
<pre>restrain ICM from engaging in monopolistic and anti-competitive conduct, not <o:p></o:p></pre>
<pre>only because ICANN was intimidated by ICM's previous pressure tactics and strategies but also because ICM agreed to pay ICANN very significant <o:p></o:p></pre>
<pre>compensation for the right to act as the .XXX registry, as more particularly averred <o:p></o:p></pre>
<pre>above. <o:p></o:p></pre>
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