[council] Summary of Comments for the Inter-Registrar Transfer Policy Denials Definitions PDP

Dear drafting group members and Councilors,

Please see the summary of public comments below – the single comment on-topic was posted by Danny Younger and is included in full in the summary. As the GNSO handling of this PDP has concluded and the outcome is now due for the ICANN Board, I would appreciate comments to the statements made by Danny Younger, in order to fully inform the Board’s handling of the PDP outcome.

Very best regards

Olof Nordling

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Summary of Comments for the Inter-Registrar Transfer Policy Denials Definitions PDP

The comment period ran from 15 September 2008 to 6 October 2008. Two comments were received of which one off-topic (from Shantanu Panigrahi) expressing concerns over a particular transfer case and one comment (from Danny Younger) objecting to a part of the definition in the proposed new text for Denial Reason #9. The proposed text for Denial Reason #9 is as follows:

“A domain name is within 60 days (or a lesser period to be determined) after being transferred (apart from being transferred back to the original Registrar in cases where both Registrars so agree and/or where a decision in the dispute resolution process so directs). “Transferred” shall only mean that an inter-registrar transfer, or transfer to the Registrar of Record has occurred in accordance with the procedures of this policy.”

Danny Younger states the following:

“With regard to Denial Reason #9, I take issue with the clause "or transfer to the Registrar of Record" included therein.

In the first instance, this clause is out of scope as the clarifications requested were only to pertain to inter-registrar transfers.

In the second place, the clause serves to validate the unacceptable practice known as the Registrar Direct Transfer, i.e. "Should you

choose not to renew your domain name during any applicable grace period, you agree that we may, in our sole discretion, renew and transfer the domain name to a third party on your behalf (such a transaction is hereinafter referred to as a "Direct Transfer")."

Third, the clause is anticompetitive. With this language, the following scenario would unfold:

1. a registrant doesn't renew his domain name and the domain is transfered to the registrar of record

2. The registrar auctions the domain to a third party

3. The third-party is prevented from readily transferring the registration to another registrar because of the 60-day lock. This practice serves to keep most Direct Transfers at the incumbent registrar (as such impeding free competition for domain name registration services).”