Changes

===ICANN's Position on Vertical Separation for New gTLDs===

===ICANN's Position on Vertical Separation for New gTLDs===

Vertical separation is one of the most important method used by ICANN in maintaining its commitment to promote competition, which is one of the founding principles of the organization. On March 12, 2002, the [[ICANN Board]] passed a resolution stating the organization strong position for the implementation of "strict separation" of registries and registrars for new gTLDs. The ICANN Board also stated that co-ownership will be prohibited. However, the ICANN Board also indicated, ''"if a policy becomes available from the GNSO, and approved by the Board prior to the launch of the new gTLD program, that policy will be considered by the Board for adoption as part of the New gTLD Program."'' <ref>[http://www.icann.org/en/groups/board/documents/resolutions-12mar10-en.htm#5 Adopted Board Resolutions|Nairobi, March 12, 2010]</ref>

Some believe that vertical separation is one of the most important methods used by ICANN to maintain its commitment to promote competition, which is one of the founding principles of the organization. On March 12, 2002, the [[ICANN Board]] passed a resolution stating the organization's strong position for the implementation of "strict separation" of registries and registrars for new gTLDs. The ICANN Board also stated that co-ownership will be prohibited. However, the ICANN Board also indicated, ''"if a policy becomes available from the GNSO, and approved by the Board prior to the launch of the new gTLD program, that policy will be considered by the Board for adoption as part of the New gTLD Program."''<ref>[http://www.icann.org/en/groups/board/documents/resolutions-12mar10-en.htm#5 Adopted Board Resolutions|Nairobi, March 12, 2010]</ref>

During a Special Meeting on Novemer 5, 2010, the ICANN Board changed its position regarding  the vertical separation of registries and registrars. The Board removed the restriction on cross ownership on the Registry Agreements and replaced it with ''"requirements and restrictions on any inappropriate or abusive conduct arising out of registry-registrar cross ownership..."'' These abusive conducts are not limited to misuse of data and violations of a registry code of conduct. In addition, ICANN also stated that it will include additional enforcement mechanisms such as self-auditing requirements, contractual termination and punitive damages. Moreover, it also emphasized that "it will have the ability to refer issues to relevant competition authorities."<ref>[http://www.icann.org/en/groups/board/documents/resolutions-05nov10-en.htm Special Meeting of the ICANN Board of Directors, ICANN's Silicon Valley Office, Palo Alto, California, USA]</ref>

During a Special Meeting on Novemer 5, 2010, the ICANN Board changed its position regarding  the vertical separation of registries and registrars. The Board removed the restriction on cross ownership on the Registry Agreements and replaced it with ''"requirements and restrictions on any inappropriate or abusive conduct arising out of registry-registrar cross ownership..."'' These abusive conducts are not limited to misuse of data and violations of a registry code of conduct. In addition, ICANN also stated that it will include additional enforcement mechanisms such as self-auditing requirements, contractual termination and punitive damages. Moreover, it also emphasized that "it will have the ability to refer issues to relevant competition authorities."<ref>[http://www.icann.org/en/groups/board/documents/resolutions-05nov10-en.htm Special Meeting of the ICANN Board of Directors, ICANN's Silicon Valley Office, Palo Alto, California, USA]</ref>