Comment on the ICANN DAGv4 - Introduction of new gTLDs

June 5, 2010

Dear Sir,

please consider this comment for alteration of the DAG v4.

Suggestion:

It is proposed that on page 46 of the DAGv4, the following paragraph is added after 1.5.4

1.5.5 Terms of Payment

Payment to ICANN may be effected in USD or in the legal currency of the applicant’s country. If the applicant decides to use his local currency for processing payments, the exchange rate used shall be the one which applies on the day the applicant registers with TAS (refer to paragraph 1.5.1).

Reasons for proposed alteration

The burden of adverse exchange rate movements shall not lie with the applicant. For example, if the fee of USD 185,000 translates into EURO 150,000 on the day of registration with TAS, depreciation of the EURO may cause the applicant to later pay EUR 160,000 or more, causing great inconvenience to potential applicants.

It is acknowledged that ICANN is a US-based not-for-profit entity adhering to the laws of the State of California. Therefore, it is perfectly prudent for the fees to be stated in USD and that currency be used throughout this document.

However, it is also true that the JPA with the US Government expired in September, 2009, and the CEO Rod Beckstrom repeatedly pointed out that ICANN under the AoC is now “responsible to the world”. Therefore, is is only natural that the risk of exchange rate movements shall not be born by the applicant alone, but shared with ICANN. Also, I believe it may be thought to be fair for ICANN to acquire financial products to hedge this currency risk, rather than each and every single applicant having to provide this insurance on his own.