Re: [ga] ICANN Budget Update

[Jeff Williams <jwkckid1@xxxxxxxxxxxxx>]

Dear Secretariat and all former DNSO GA members or other interested
stakeholders/users,

GNSO SECRETARIAT wrote:

> [To: council[at]gnso.icann.org; ga[at]gnso.icann.org]
> [To: liaison6c[at]gnso.icann.org; announce[at]gnso.icann.org]
>
> ICANN's Adopted Fiscal Year 2004?2005 Budget
> http://www.icann.org/financials/budget-fy04-05-06oct04.html
>
> POSTED 22 September 2004,
> has been UPDATED 6 October 2004*
>
> with  an jnserted new section: "Invoicing of Transaction-Based gTLD Fees"
> http://www.icann.org/financials/budget-fy04-05-06oct04.html#invoicing

  This amounts as a TAX on registrants that is effectively of
questionable
legal correctness.  So ICANN is again using it's own Registrars through
registrants without their consent to fund ICANN which is supposed to
be a non-profit 501 c3 corp.  This would seems to not meet the legal
criterion for a non-profit corp...

  Copied text of relevant section referred to below:

"Transaction or Billable Event Based Fees: gTLDs

  This proposed gTLD registrar funding model (including the per
registrar fee described below) is being developed with gTLD
registrars; the final   form is subject to registrar approval. This
year's budget plans that the fees charged to registrants through
registrars should be made on billable event (i.e., a per transaction)
basis rather than by the current quarterly calculation. The current
method divides the portion of the ICANN budget allocated to
the registrant fees by the number of total number of domain names
to develop a "per name" fee. That fee can vary from quarter to
quarter as the number of registrations fluctuates. In cases where
the registrar sells a multi-year registration, the registrar will be
  out-of-pocket if the per-name fee rises over the years.

  Billable event or transaction based fees (fees paid by the registrant,
through the registrar, to ICANN) effectively address these issues.
Billable
events are all new subscriptions (adds), renewals or transfers that
result 
in an invoice to the registrant. Since the registrar forwards fees to
ICANN
only upon the commitment from the registrant, the fees paid will always
be directly proportional to revenues. Variability in the totalnumber of
names would not affect the fee rates. While needing to ensure a smooth
transition phase, ICANN will absorb in the longer term, within reason,
the variability of the process. In the case of multi-year registrations,
the
total billable event fee for all years would also be paid upon receipt,
negating the effects of any subsequent changes to the rate structure.
Since the fee is charged on an event-by-event basis, the charge can
more readily be passed through directly to the registrant, either as a
price increase or as a separate line item charge on the registrar's
invoice to the registrant."

>
>
> --
> Glen de Saint Géry
> GNSO Secretariat
> gnso.secretariat@xxxxxxxxxxxxxx

Regards,
--
Jeffrey A. Williams
Spokesman for INEGroup LLA. - (Over 134k members/stakeholders strong!)
"Be precise in the use of words and expect precision from others" -
    Pierre Abelard

"If the probability be called P; the injury, L; and the burden, B;
liability depends upon whether B is less than L multiplied by
P: i.e., whether B is less than PL."
United States v. Carroll Towing  (159 F.2d 169 [2d Cir. 1947]
===============================================================
Updated 1/26/04
CSO/DIR. Internet Network Eng. SR. Eng. Network data security
IDNS. div. of Information Network Eng.  INEG. INC.
E-Mail jwkckid1@xxxxxxxxxxxxx
 Registered Email addr with the USPS
Contact Number: 214-244-4827