<html><head><style id="outgoing-font-settings">#response_container_BBPPID{font-family: initial; font-size:initial; color: initial;}</style></head><body style="background-color: rgb(255, 255, 255); background-image: initial; line-height: initial;"><div id="response_container_BBPPID" style="outline:none;" dir="auto" contenteditable="false"> <div name="BB10" id="BB10_response_div_BBPPID" dir="auto" style="width:100%;"> Thank you Marita for your work on this. Stay safe everyone.</div>                                                                                                                                      <div name="BB10" id="response_div_spacer_BBPPID" dir="auto" style="width:100%;"> <br style="display:initial"></div> <div id="blackberry_signature_BBPPID" name="BB10" dir="auto">     <div id="_signaturePlaceholder_BBPPID" name="BB10" dir="auto">Sent from my BlackBerry — the most secure mobile device</div> </div></div><div id="_original_msg_header_BBPPID" dir="auto">                                                                                                                                             <table width="100%" style="border-spacing: 0px; display: table; outline: none;" contenteditable="false"><tbody><tr><td colspan="2" style="padding: initial; font-size: initial; text-align: initial;">                           <div style="border-right: none; border-bottom: none; border-left: none; border-image: initial; border-top: 1pt solid rgb(181, 196, 223); padding: 3pt 0in 0in; font-family: Tahoma, "BB Alpha Sans", "Slate Pro"; font-size: 10pt;">  <div id="from"><b>From:</b> mmoll@ca.inter.net</div><div id="sent"><b>Sent:</b> May 1, 2020 10:25 AM</div><div id="to"><b>To:</b> brianbeaton@knet.ca; advisors@tc.ca</div><div id="cc"><b>Cc:</b> susanodo.unb@gmail.com</div><div id="subject"><b>Subject:</b> Re: [Advisors] Fwd: [IP] Sale of .org domain registry delayed by California attorney general</div></div></td></tr></tbody></table> <br> </div><!--start of _originalContent --><div name="BB10" dir="auto" style="background-image: initial; line-height: initial; outline: none;" contenteditable="false"><style>#ssc58290 p.MsoNormal,#ssc58290 li.MsoNormal,#ssc58290 div.MsoNormal{margin: 0cm;margin-bottom: 0.0001pt;font-size: 11pt;font-family: "Calibri", sans-serif;}#ssc58290 h1{margin-right: 0cm;margin-left: 0cm;font-size: 24pt;font-family: "Calibri", sans-serif;font-weight: bold;}#ssc58290 h2{margin-right: 0cm;margin-left: 0cm;font-size: 18pt;font-family: "Calibri", sans-serif;font-weight: bold;}#ssc58290 a:link,#ssc58290 span.MsoHyperlink{color: blue;text-decoration: underline;}#ssc58290 a:visited,#ssc58290 span.MsoHyperlinkFollowed{color: purple;text-decoration: underline;}#ssc58290 span.Heading1Char{font-family: "Calibri", sans-serif;font-weight: bold;}#ssc58290 span.Heading2Char{font-family: "Calibri", sans-serif;font-weight: bold;}#ssc58290 p.comment-author,#ssc58290 li.comment-author,#ssc58290 div.comment-author{margin-right: 0cm;margin-left: 0cm;font-size: 11pt;font-family: "Calibri", sans-serif;}#ssc58290 span.comment-time{}#ssc58290 p.comment-body,#ssc58290 li.comment-body,#ssc58290 div.comment-body{margin-right: 0cm;margin-left: 0cm;font-size: 11pt;font-family: "Calibri", sans-serif;}#ssc58290 .MsoChpDefault{font-size: 10pt;}#ssc58290 div.WordSection1{}#ssc58290 ol{margin-bottom: 0cm;}#ssc58290 ul{margin-bottom: 0cm;}</style><div id="ssc58290"><div><p><font face="Times New Roman, Times, serif">Thanks Brian, for
        posting this to the TC list while I have been busy reading the
        flood of responses to this decision on the ICANN lists. This has
        been a storm that has been raging in the ICANN-ISOC world since
        November. As I posted a few weeks ago, there was massive
        opposition to this proposed privatization of what is sometimes
        seen as the last vestige of the "public interest" internet dream
        of 20 (maybe more) years ago. <br>
      </font></p><p><font face="Times New Roman, Times, serif">ICANN finally had to
        move when the Attorney General of California came out saying
        this proposed sale was not in keeping with the regulations
        around non-profit corporations.  PIR is incorporated in
        California. </font><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif">But this AG decision was
          informed by the public opposition coming from the end-user
          community</font> (which At Large is tasked to speak for) and
        the public interest prevailed in the end.  But the role of U.S.
        government body in this dispute will have repercussions of its
        own -- so let"s enjoy the moment -- before the inevitable
        appeals and lawsuits take hold.</font></p><p><font face="Times New Roman, Times, serif">On behalf of TC and as
        the North American representative to the ICANN At Large Advisory
        Committee, I have been very active on this file from the
        beginning, standing with others who were encouraging the ICANN
        board to take a strong position on maintaining PIR's non-profit
        status. All this time, the outcome has been uncertain and it was
        essential to keep up the pressure as deadlines kept being pushed
        forward. The support of this group in agreeing to keep some
        active representation at ICANN has made a difference and still
        matters. <br>
      </font></p><p><font face="Times New Roman, Times, serif">Marita</font><br>
    </p><div class="moz-cite-prefix">On 5/1/2020 9:54 AM, Brian Beaton
      wrote:<br>
    </div><blockquote type="cite">
      
      
      
      <div class="WordSection1">
        <p class="MsoNormal">FYI .. <a href="https://www.icann.org/news/blog/icann-board-withholds-consent-for-a-change-of-control-of-the-public-interest-registry-pir">https://www.icann.org/news/blog/icann-board-withholds-consent-for-a-change-of-control-of-the-public-interest-registry-pir</a></p>
        <p class="MsoNormal"> </p>
        <div style="border:none;border-bottom:solid #cfcfcf 1pt;padding:0cm 0cm 0cm 0cm;background:white">
          <p class="MsoNormal" style="margin-bottom:7.5pt;background:white;border:none;padding:0cm"><b><span style="font-size:24pt;font-family:'helvetica';color:#333333">ICANN Board
                Withholds Consent for a Change of Control of the Public
                Interest Registry (PIR)</span></b></p>
        </div>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">Today,
            the ICANN Board made the decision to reject the proposed
            change of control and entity conversion request that Public
            Interest Registry (PIR) submitted to ICANN.</span></p>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">After
            completing extensive due diligence, the ICANN Board finds
            that withholding consent of the transfer of PIR from the
            Internet Society (ISOC) to Ethos Capital is reasonable, and
            the right thing to do.</span></p>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">ICANN'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 ICANN 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.</span></p>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">On
            13 November 2019, PIR <a href="https://thenew.org/the-internet-society-public-interest-registry-a-new-era-of-opportunity/"><span style="color:#0098d5;text-decoration:none">announced</span></a> that ISOC,
            its parent organization, had reached an agreement with Ethos
            Capital, under which Ethos Capital would acquire PIR and all
            of its assets from ISOC. Under the agreement, PIR would also
            be converted from a Pennsylvania not-for-profit corporation
            to a for-profit Pennsylvania limited liability
            company. ISOC created and agreed to the transaction details
            that are under review.</span></p>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">On
            14 November 2019, PIR formally <a href="https://www.icann.org/en/system/files/correspondence/cimbolic-to-icann-14nov19-en.pdf"><span style="color:#0098d5;text-decoration:none">submitted</span></a> to ICANN a
            "Notice of Indirect Change of Control and Entity Conversion"
            in advance of closing the proposed transaction between Ethos
            Capital and ISOC. Since 2003, PIR has operated the .ORG
            generic top-level domain (gTLD) as a not-for-profit
            organization, as well as six other gTLDs. Per the gTLD <a href="https://newgtlds.icann.org/sites/default/files/agreements/agreement-approved-31jul17-en.html#article7.5"><span style="color:#0098d5;text-decoration:none">Registry
                Agreements</span></a>, ICANN must either approve or
            withhold consent of a proposed change of control, the
            deadline for which is 4 May 2020.</span></p>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">ICANN's
            role has been to evaluate the reasonableness of PIR's
            request for indirect change of control and entity
            conversion. In doing so, ICANN 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 ISOC on the proposed
            transaction, and how that community input would be reflected
            in the operations of PIR following its conversion.</span></p>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">Throughout
            this process, the ICANN Board has worked thoughtfully and
            thoroughly to determine if it is reasonable under PIR's
            Registry Agreements for ICANN to either approve or withhold
            consent to the proposed change of control. Before making our
            determination, the Board, among other things:</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">Conducted
            thorough due diligence</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">Received
            and reviewed hundreds of pages of documentation and
            responses provided by PIR, ISOC and Ethos Capital
            following ICANN issuing three requests for more information</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">Was
            briefed extensively by ICANN org</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">Received
            and considered more than 30 letters from stakeholders</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">Considered
            input from an ICANN67 public forum, views of the community
            and others who weighed in after we received PIR's Public
            Interest Commitments</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">Considered
            the opinions expressed in the California Attorney General's
            Office letter sent to ICANN on 15 April 2020</span></p>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">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 ICANN 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 gTLD registry. Factors that
            were considered in determining reasonableness include, but
            are not limited to:</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">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.</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">ICANN 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.</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">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.</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">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.</span></p>
        <p class="MsoNormal" style="margin-right:0cm;margin-bottom:11.25pt;margin-left:51pt;background:white"><span style="font-size:10pt;font-family:'symbol';color:#333333">·<span style="font:7pt 'times new roman'">         </span></span><span style="font-size:12pt;font-family:'helvetica';color:#333333">The
            transaction as proposed relies on ICANN as a backstop for
            enforcement of disputes between the .ORG community and the
            registry operator in an untested manner.</span></p>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">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.</span></p>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">The
            Board would like to thank the global community and
            stakeholders for their engagement.</span></p>
        <p class="MsoNormal" style="background:white"><span style="font-size:12pt;font-family:'helvetica';color:#333333">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"><span style="color:#0098d5;text-decoration:none">here</span></a>.</span></p>
        <p class="MsoNormal"><b><span style="font-size:18pt;font-family:'helvetica'">Comments</span></b></p>
        <p class="MsoNormal" style="margin-left:36pt">Bill Maggs  <b>22:18 UTC
            on 30 April 2020</b></p>
        <p class="MsoNormal" style="margin-left:36pt">How will
          governance change to close up the holes big enough to drive a
          truck through that this sorry affair exposed?</p>
        <p class="MsoNormal" style="margin-left:36pt">William
          Stewart  <b>05:48 UTC on 01 May 2020</b></p>
        <p class="MsoNormal" style="margin-left:36pt">Very well done.
          Congratulations on listening and doing the right thing. This
          was fundamentally important, for many reasons. Great thanks.</p>
        <p class="MsoNormal" style="margin-left:36pt">David
          Mussington  <b>06:16 UTC on 01 May 2020</b></p>
        <p class="MsoNormal" style="margin-left:36pt">I have to say I
          found the entire proposal to transfer the .org registry to a
          for profit company mystifying. I am glad that the board was
          able to intervene. A sterling example of wise board oversight
          and governance.</p>
        <p class="MsoNormal"> </p>
        <p class="MsoNormal"> </p>
        <div style="border:none;border-top:solid #b5c4df 1pt;padding:3pt 0cm 0cm 0cm">
          <p class="MsoNormal"><b><span style="font-size:12pt;color:black">From: </span></b><span style="font-size:12pt;color:black"><a class="moz-txt-link-rfc2396E" href="mailto:advisors-bounces@tc.ca"><advisors-bounces@tc.ca></a>
              on behalf of Marita Moll <a class="moz-txt-link-rfc2396E" href="mailto:mmoll@ca.inter.net"><mmoll@ca.inter.net></a><br>
              <b>Date: </b>Saturday, February 1, 2020 at 12:56 PM<br>
              <b>To: </b>TC Advisors <a class="moz-txt-link-rfc2396E" href="mailto:advisors@tc.ca"><advisors@tc.ca></a><br>
              <b>Subject: </b>[Advisors] Fwd: [IP] Sale of .org domain
              registry delayed by California attorney general</span></p>
        </div>
        <div>
          <p class="MsoNormal"> </p>
        </div>
        <p><span style="font-family:'times new roman' , 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</span></p>
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          <p class="MsoNormal">Begin forwarded message:<br>
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                  <p class="MsoNormal"> <a href="https://mashable.com/article/california-attorney-general-dot-org-sale/"><span style="font-size:12pt;font-family:, serif">https://mashable.com/article/california-attorney-general-dot-org-sale/</span></a></p>
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                    <span style="font-size:12pt;font-family:, serif;color:black">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></p>
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                <p class="MsoNormal">  Marita<a href="https://ip.topicbox.com/groups/ip/T73be9e206be9d63c-Me24d47c16080dd2e9e3a00bd">Permalink</a> </p>
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        <p class="MsoNormal">_______________________________________________
          Advisors mailing list <a class="moz-txt-link-abbreviated" href="mailto:Advisors@tc.ca">Advisors@tc.ca</a>
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      <pre class="moz-quote-pre">_______________________________________________
Advisors mailing list
<a class="moz-txt-link-abbreviated" href="mailto:Advisors@tc.ca">Advisors@tc.ca</a>
<a class="moz-txt-link-freetext" href="http://victoria.tc.ca/mailman/listinfo/advisors">http://victoria.tc.ca/mailman/listinfo/advisors</a>
</pre>
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