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[http://www.icann.org/en/irp/icm-v-icann/icann-response-to-icm-request-08sep08.pdf ICANN Response to ICM Request for IRP]</ref>
[http://www.icann.org/en/irp/icm-v-icann/icann-response-to-icm-request-08sep08.pdf ICANN Response to ICM Request for IRP]</ref>
On February 18, 2010, the IRP declared that ICM Registry met the required sponsorship criteria for the .xxx sTLD application process, and that ICANN did not carry out a fair and objective decision. Pursuant to Article IV, Section 3(12) of the Bylaws, the Internet governing body would shoulder the fees and expenses incurred by the ICDR ($4,500) including all the expenses and fees of the IRP ($473,744.91) and reimburse the ICM registry's expenses ($241,372.46).<ref>
On February 18, 2010, the IRP declared that ICM Registry met the required sponsorship criteria for the .xxx sTLD application process, and that ICANN did not carry out a fair and objective assessment. At the time, the ICANN Bylaws permitted the prevailing party to recoup its administrative fees and costs. The IRP Panel shifted all fees and costs to ICANN, including all the expenses and fees of the IRP ($473,744.91). ICANN was instructed to reimburse the ICM registry's expenses ($241,372.46).<ref name="ICMdec">
[http://www.icann.org/en/irp/icm-v-icann/irp-panel-declaration-19feb10-en.pdf Declaration of the Independent Review Panel]</ref>
[http://www.icann.org/en/irp/icm-v-icann/irp-panel-declaration-19feb10-en.pdf Declaration of the Independent Review Panel]</ref> The IRP Panel expressly stated that "the holdings of the Independent Review Panel are advisory in nature; they do not constitute a binding arbitral award."<ref name="ICMdec" />
In response, the board created a series of decisional planning documents to determine how to move forward with ICM's application.<ref>[https://www.icann.org/resources/pages/icm-v-icann-2012-02-25-en ICANN.org - ICM v. ICANN Archive]</ref> In June 2010, the board determined that it would "accept and act in accordance with some of the Panel's findings" while continuing to deliberate on the full findings of the IRP Panel.<ref name="juneicmres">[https://www.icann.org/resources/board-material/resolutions-2010-06-25-en#5 Resolutions (2010.06.25.19-23) of the Board], June 25, 2010</ref> The accepted findings were that that ICANN Board initially determined that ICM met the sponsorship criteria, and then reconsidered that decision in a manner inconsistent with neutral, fair and objective documented policy.<ref name="ICMdec" /><ref name="juneicmres" /> The Board approved the following steps as a result:
# staff to conduct expedited due diligence to ensure that: (1) the ICM Application is still current; and (2) there have been no changes in ICM's qualifications.
# if the expedited due diligence results are successful, ICANN staff to proceed into draft contract negotiations with ICM, taking into account the GAC advice received to date.
# upon staff's finalizing of a draft contract with ICM, the Board will determine whether the proposed contract is consistent with GAC advice, and if not, will enter into GAC consultation in accordance with the Bylaws.
# after the GAC consultation is completed, the Board will decide whether to approve the contract, and will declare whether its action is in accordance with GAC advice or not.<ref name="juneicmres" />
In December 2010, the board initiated consultation with the GAC with the intention of entering into a registry agreement with ICM.<ref>[https://www.icann.org/resources/board-material/resolutions-2010-12-10-en#4 Resolutions (2010.12.10.23-26) of the Board], December 10, 2010</ref> In March 2011, the [[Registry Agreement]] with ICM was approved, with the board acknowledging good faith efforts to reach a consensus with the GAC, and noting that the GAC advice was not followed.<ref>[http://www.icann.org/en/minutes/resolutions-18mar11-en.htm#5 Resolutions (2011.03.11.23-25) of the Board], March 11, 2011</ref><ref>[https://www.icann.org/en/registry-agreements/details/xxx?section=agreement ICANN.org - .xxx Registry Agreement], as amended</ref>
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