[Advisors] Fwd: [IP] Sale of .org domain registry delayed by California attorney general

[Marita Moll]

Hello advisors. In what some in the community have described as a 
stunning development, the Attorney General of the State of California 
has sent a strong letter to ICANN (which is a non-profit incorporated 
under California law) asking for some very detailed information.  The 
concerns of the non-profit community have clearly been heard

Begin forwarded message:
>
>>  https://mashable.com/article/california-attorney-general-dot-org-sale/
>>
>> The .org domain takeover has been delayed, at least for now.
>>
>> California Attorney General Xavier Becerra sent a letter to the 
>> Internet Corporation for Assigned Names and Numbers (ICANN) demanding 
>> more information about the private equity takeover of the .org domain 
>> registry. The attorney general is seeking answers to 35 questions 
>> concerning the sale as well as documents sent between ICANN, private 
>> equity firm Ethos Capital, and Public Interest Registry (PIR), which 
>> manages the .org domain.
>>
>> Ethos Capital disclosed last year that it was acquiring PIR from its 
>> non-profit parent organization, the Internet Society, for $1.135 billion.
>>
>> ICANN, the non-profit organization that oversees domain names, 
>> disclosed the letter on its website along with its own correspondence 
>> with PIR, informing it of the development. Previously, ICANN had 
>> until Feb. 17 to approve or deny the sale. According to ICANN, as a 
>> result of the California AG’s letter, it’s seeking to delay this 
>> deadline until April 20.
>>
>> ICANN says it's "fully cooperating" with the request. In its letter 
>> to PIR, ICANN gives a heads up that it will be providing the attorney 
>> general "confidential material" to comply with the AG's demands. As 
>> ICANN's letter states, it has terms in its contract with PIR which 
>> forbid the organization from disclosing information that the registry 
>> deems confidential unless required by law. ICANN clearly views the 
>> AG's letter as applicable.
>>
>> It’s a stunning development that certainly vindicates the concerns of 
>> non-profits, internet activists, and domain name holders.
>>
>> Many of the attorney general’s questions revolve around the removal 
>> of the long-standing price caps in ICANN’s most recent contract 
>> renewal with PIR. The price caps on .org domains allowed the registry 
>> raise registration prices no more than 10 percent each year. Without 
>> those price caps, the registry could raise pricing for registration 
>> and renewals as much as it would like. In addition, it could also add 
>> new pricing structures, such as deeming certain domains as "premium" 
>> and charging whatever it would like for those domains.
>>
>> Not long after ICANN’s price cap removal gave the registry complete 
>> control of .org domain pricing, Ethos Capital announced its 
>> acquisition of the registry. Many critics of the sale were concerned 
>> with the timing of these developments. Non-profit organizations, 
>> which previously galvanized to try and stop the price cap removal in 
>> the first place, worried that the private equity firm would raise 
>> .org prices in order to quickly recoup its investment.
>>
>> ICANN previously said that the organization was “powerless” to do 
>> anything about the sale of the .org registry. However, ICANN’s tune 
>> quickly changed as news spread of the private equity takeover. An 
>> ICANN board member told internet activists, who recently protested 
>> outside of ICANN’s LA offices, that the organization was taking the 
>> sale “very seriously.”
>>
>> There are currently more than 11.5 million registered .org domain 
>> names. Registrants pay a yearly fee to renew their domain 
>> registrations. PIR currently generates around $100 million a year 
>> selling .org domain names to registrars, such as Namecheap and 
>> Godaddy, for just under $10 per year.
>>
>> The AG’s office oversees nonprofits and charitable organizations in 
>> the state of California. Becerra has cracked down on nonprofits that 
>> break the law.
>>
>> Whether the acquisition is stopped remains to be seen. It all depends 
>> on what the California attorney general finds in his investigation.
>>
> Marita**Permalink 
> <https://ip.topicbox.com/groups/ip/T73be9e206be9d63c-Me24d47c16080dd2e9e3a00bd> 
>
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