<html><head><meta http-equiv="content-type" content="text/html; charset=utf-8"></head><body dir="auto"><div dir="ltr"><div dir="ltr">* Icann agrees with the Internet community *</div><div dir="ltr"><br></div><div dir="ltr"> In a decision ending an alleged and never-consulted sale of the .org to a for-profit company, Icann announced that it will not allow such a transaction.</div><div dir="ltr"><br></div><div dir="ltr"> Finally, the Internet community clearly realizes that in a multi-stakeholder governance system, even the highest corporate employees cannot act alone in making decisions that run counter to the spirit of the Internet Society.</div><div dir="ltr"><br></div><div dir="ltr"> A lesson that the staff must assimilate at all levels. Employees of the Internet Society work for, must consult with, the community and serve its interests.</div><div dir="ltr"><br></div><div dir="ltr"> Icann's decision implies, as Andrew Sullivan, President & CEO, of the Internet Society rightly says, "... that the transaction cannot and will not continue"</div><div dir="ltr"><br></div><div dir="ltr"> Icann's decision here: https://www.icann.org/news/blog/icann-board-withholds-consent-for-a-change-of-control-of-the-public-interest-registry-pir</div><div dir="ltr"><br></div><div dir="ltr"> #GovernanceIsCommunity</div><div dir="ltr"><br></div><div dir="ltr">Carlos Vera</div></div><div dir="ltr"><br><blockquote type="cite">El 30 abr. 2020, a la(s) 22:01, Raphael Beauregard-Lacroix <rbeauregardlacroix@gmail.com> escribió:<br><br></blockquote></div><blockquote type="cite"><div dir="ltr"><div dir="ltr"><div>Hi all<br></div><div><br></div><div>Thanks Bruna!</div><div><br></div>This is particularly... euphemistic<br><div><br></div><div><ul style="font-size:16px;box-sizing:border-box;padding:0px;line-height:1.4rem;margin:0px 0px 1.25rem 20px;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif"><li style="margin:0px 0px 15px 20px;box-sizing:border-box;height:inherit;line-height:1.4rem">Considered the opinions expressed in the California Attorney General's Office letter sent to <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> on 15 April 2020</li></ul>"Opinions." More like threat to sue. </div><div><br></div><div>Anyhow, where does that leave us? Is PIR still up for grabs (and by whom?) Is the whole thing just over? Are Ethos/ISOC just going to redo thier homework and come back with another transaction proposal? </div><div><br></div><div>Have a nice day, </div></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Thu, Apr 30, 2020 at 10:50 PM Bruna Martins dos Santos <<a href="mailto:bruna.mrtns@gmail.com">bruna.mrtns@gmail.com</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div dir="ltr">Hey all, <div><br></div><div>I hope this email finds you well! Icann Board has just issued the following statement on the PIR sale: </div><div><br></div><div><a href="https://www.icann.org/news/blog/icann-board-withholds-consent-for-a-change-of-control-of-the-public-interest-registry-pir" target="_blank">https://www.icann.org/news/blog/icann-board-withholds-consent-for-a-change-of-control-of-the-public-interest-registry-pir</a><br></div><div><br></div><div>Best, </div><div>Bruna </div><div><br></div><div><br></div><div>----</div><div><div class="gmail_quote"><div dir="auto">
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<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
Today, the <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> Board
made the decision to reject the proposed change of control and entity conversion request that Public Interest Registry (PIR) submitted to <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr>.</p>
<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
After completing extensive due diligence, the <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> Board
finds that withholding consent of the transfer of PIR from the Internet Society (<abbr title="Internet Society" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ISOC</abbr>)
to Ethos Capital is reasonable, and the right thing to do.</p>
<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
<abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr>'s
role is to ensure the stable and secure operation of the Internet's unique identifier systems. We are dedicated to making the right decision, knowing that whatever we decide will be well received by some, and not by others. It is our responsibility to weigh
all factors from an <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> Bylaws
and policies perspective, including considering the global public interest. We have done this diligently, ensuring as much transparency as possible and welcoming input from stakeholders throughout.</p>
<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
On 13 November 2019, PIR <a href="https://thenew.org/the-internet-society-public-interest-registry-a-new-era-of-opportunity/" style="box-sizing:border-box;color:rgb(0,152,213);text-decoration:none" target="_blank">announced</a> that <abbr title="Internet Society" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ISOC</abbr>,
its parent organization, had reached an agreement with Ethos Capital, under which Ethos Capital would acquire PIR and all of its assets from <abbr title="Internet Society" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ISOC</abbr>.
Under the agreement, PIR would also be converted from a Pennsylvania not-for-profit corporation to a for-profit Pennsylvania limited liability company. <abbr title="Internet Society" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ISOC</abbr>created
and agreed to the transaction details that are under review.</p>
<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
On 14 November 2019, PIR formally <a href="https://www.icann.org/en/system/files/correspondence/cimbolic-to-icann-14nov19-en.pdf" style="box-sizing:border-box;color:rgb(0,152,213);text-decoration:none" target="_blank">submitted</a>to <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> a
"Notice of Indirect Change of Control and Entity Conversion" in advance of closing the proposed transaction between Ethos Capital and <abbr title="Internet Society" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ISOC</abbr>.
Since 2003, PIR has operated the .ORG generic top-level domain (<abbr title="generic Top Level Domain" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">gTLD</abbr>)
as a not-for-profit organization, as well as six other gTLDs. Per the <abbr title="generic Top Level Domain" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">gTLD</abbr> <a href="https://newgtlds.icann.org/sites/default/files/agreements/agreement-approved-31jul17-en.html#article7.5" style="box-sizing:border-box;color:rgb(0,152,213);text-decoration:none" target="_blank">Registry
Agreements</a>, <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> must
either approve or withhold consent of a proposed change of control, the deadline for which is 4 May 2020.</p>
<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
<abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr>'s
role has been to evaluate the reasonableness of PIR's request for indirect change of control and entity conversion. In doing so, <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> evaluated
an extensive amount and variety of information related to the proposed transaction, including details of the transaction structure, financing, and other funding sources of Ethos Capital, the parties involved, the role of the Pennsylvania authorities, information
related to financial resources and operational and technical capability, how the new for-profit PIR under the control of Ethos Capital would be responsive to the needs of the non-commercial community, what input the .ORG community had provided to PIR or <abbr title="Internet Society" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ISOC</abbr> on
the proposed transaction, and how that community input would be reflected in the operations of PIR following its conversion.</p>
<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
Throughout this process, the <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> Board
has worked thoughtfully and thoroughly to determine if it is reasonable under PIR's Registry Agreements for <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> to
either approve or withhold consent to the proposed change of control. Before making our determination, the Board, among other things:</p>
<ul style="font-size:16px;box-sizing:border-box;padding:0px;line-height:1.4rem;margin:0px 0px 1.25rem 20px;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
<li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
Conducted thorough due diligence</li><li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
Received and reviewed hundreds of pages of documentation and responses provided by PIR, <abbr title="Internet Society" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ISOC</abbr> and
Ethos Capital following <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> issuing
three requests for more information</li><li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
Was briefed extensively by <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> org</li><li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
Received and considered more than 30 letters from stakeholders</li><li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
Considered input from an ICANN67 public forum, views of the community and others who weighed in after we received PIR's Public Interest Commitments</li><li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
Considered the opinions expressed in the California Attorney General's Office letter sent to <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> on
15 April 2020</li></ul>
<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
The Board was presented with a unique and complex situation – impacting one of the largest registries with more than 10.5 million domain names registered. After completing its evaluation, the <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> Board
finds that the public interest is better served in withholding consent as a result of various factors that create unacceptable uncertainty over the future of the third largest <abbr title="generic Top Level Domain" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">gTLD</abbr> registry.
Factors that were considered in determining reasonableness include, but are not limited to:</p>
<ul style="font-size:16px;box-sizing:border-box;padding:0px;line-height:1.4rem;margin:0px 0px 1.25rem 20px;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
<li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
A change from the fundamental public interest nature of PIR to an entity that is bound to serve the interests of its corporate stakeholders, and which has no meaningful plan to protect or serve the .ORG community.</li><li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
<abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> is
being asked to agree to contract with a wholly different form of entity; instead of maintaining its contract with the mission-based, not-for-profit that has responsibly operated the .ORG registry for nearly 20 years, with the protections for its own community
embedded in its mission and status as a not-for-profit entity.</li><li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
The US$360 million debt instrument forces PIR to service that debt and provide returns to its shareholders, which raises further question about how the .ORG registrants will be protected or will benefit from this conversion. This is a fundamental change in
financial position from a not-for-profit entity.</li><li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
There are additional uncertainties, such as an untested Stewardship Council that might not be properly independent, or why PIR needs to change its corporate form to pursue new business initiatives.</li><li style="box-sizing:border-box;height:inherit;margin:0px 0px 15px 20px;line-height:1.4rem">
The transaction as proposed relies on <abbr title="Internet Corporation for Assigned Names and Numbers" style="box-sizing:border-box;unicode-bidi:bidi-override;direction:ltr;border-bottom:1px dotted rgb(153,153,153)">ICANN</abbr> as
a backstop for enforcement of disputes between the .ORG community and the registry operator in an untested manner.</li></ul>
<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
The entire Board stands by this decision. After thorough due diligence and robust discussion, we concluded that this is the right decision to take. While recognizing the disappointment for some, we call upon all involved to find a healthy way forward, with
a keen eye to provide the best possible support to the .ORG community.</p>
<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
The Board would like to thank the global community and stakeholders for their engagement.</p>
<p style="font-size:16px;box-sizing:border-box;line-height:1.4rem;margin:0px 0px 1.25rem;color:rgb(51,51,51);font-family:helvetica,arial,sans-serif">
The resolution and rationale document, which expands upon this decision is available, <a href="https://www.icann.org/resources/board-material/resolutions-2020-04-30-en" style="box-sizing:border-box;color:rgb(0,152,213);text-decoration:none" target="_blank">he</a></p></div></div></div></div></div>
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