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<p><font face="Times New Roman, Times, serif">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</font><br>
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<div class="moz-forward-container">Begin forwarded message:<br>
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<a
href="https://mashable.com/article/california-attorney-general-dot-org-sale/"
style="font-family: AvenirNextLTPro-Regular; font-size:
12pt;" moz-do-not-send="true">https://mashable.com/article/california-attorney-general-dot-org-sale/</a></div>
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<span style=" font-family:'AvenirNextLTPro-Regular';
font-size: 12pt; color: #000000;">The .org domain
takeover has been delayed, at least for now.<br>
<br>
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.<br>
<br>
Ethos Capital disclosed last year that it was acquiring
PIR from its non-profit parent organization, the
Internet Society, for $1.135 billion.<br>
<br>
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.<br>
<br>
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.<br>
<br>
It’s a stunning development that certainly vindicates
the concerns of non-profits, internet activists, and
domain name holders.<br>
<br>
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.<br>
<br>
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.<br>
<br>
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.”<br>
<br>
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.<br>
<br>
The AG’s office oversees nonprofits and charitable
organizations in the state of California. Becerra has
cracked down on nonprofits that break the law.<br>
<br>
Whether the acquisition is stopped remains to be seen.
It all depends on what the California attorney general
finds in his investigation. <span></span><br>
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Marita<strong></strong><a
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