Changes

Numerous companies have surfaced to offer private auction models, including [[Sedo]], [[Cramton Associates]], and [[Right Of The Dot]]. All of their proposed models determine that winner will pay the amount of the second-highest bid, and money will be split either equally or proportionally between the losers, so that all applicants will receive a percentage of their initial investment back.<ref name="worldipreview">[http://www.worldipreview.com/newsstory.asp?ID=46 New gTLD applicants ponder private auctions], WorldIPreview.com. Published 14 November 2012. Retrieved 6 December 2012.</ref> All applicants must agree to participate in a private auction model in order for it to proceed; otherwise, the contention set will be managed via ICANN's auction system.

Numerous companies have surfaced to offer private auction models, including [[Sedo]], [[Cramton Associates]], and [[Right Of The Dot]]. All of their proposed models determine that winner will pay the amount of the second-highest bid, and money will be split either equally or proportionally between the losers, so that all applicants will receive a percentage of their initial investment back.<ref name="worldipreview">[http://www.worldipreview.com/newsstory.asp?ID=46 New gTLD applicants ponder private auctions], WorldIPreview.com. Published 14 November 2012. Retrieved 6 December 2012.</ref> All applicants must agree to participate in a private auction model in order for it to proceed; otherwise, the contention set will be managed via ICANN's auction system.

During [[ICANN 45]] in Toronto, auction expert [[Peter Cramton]] outlined a private [[gTLD auctions|gTLD auction]] model as an alternate solution to the ICANN auctions. He has proposed an "ascending clock" model, where a price is increased by the auctioneer at each stage; bidders and sellers can then either drop out or bid on the increased amount.<ref name="domainincite">[http://domainincite.com/10828-heres-how-donuts-wants-to-resolve-its-158-new-gtld-contention-fights Here's how Donuts wants to resolve its 158 new gTLD contention fights]. Domain Incite. Published 2012 October 23. Retrieved 2012 November 13.</ref> This model is also preferred by Right Of The Dot, who also proposed "sealed bid" and "live auction" models. In a sealed bid model, applicants securely send money via a courier and packages are stored in a safe place until they are opened at the auction session.<ref name="worldipreview"></ref>

During [[ICANN 45]] in Toronto, auction expert [[Peter Cramton]] outlined an "ascending clock" model, where a price is increased by the auctioneer at each stage; bidders and sellers can then either drop out or bid on the increased amount.<ref name="domainincite">[http://domainincite.com/10828-heres-how-donuts-wants-to-resolve-its-158-new-gtld-contention-fights Here's how Donuts wants to resolve its 158 new gTLD contention fights]. Domain Incite. Published 2012 October 23. Retrieved 2012 November 13.</ref> This model is also preferred by Right Of The Dot, who also proposed "sealed bid" and "live auction" models. In a sealed bid model, applicants securely send money via a courier and packages are stored in a safe place until they are opened at the auction session.<ref name="worldipreview"></ref>

Cramton's original model proposed to run auctions during the first quarter of 2013, before ICANN announced the results of their Initial Evaluation, which would beneficially allowing losing bidder to receive a 70% of their ICANN application fee. Nonetheless, such a model would cause difficulties if winning applicants later discovered their applications were rejected, and because other applicants would have withdrawn, the gTLD would be left without an owner. The former model also lumped all TLDs that an individual applicant had applied for in one package. Criticisms stating that such a model would benefit larger companies led to a change, so that auctions will now proceed on a TLD-by-TLD basis, with all auctions being simultaneously resolved at the same time.<ref name="domainincite"></ref>

Cramton's original model proposed to run auctions during the first quarter of 2013, before ICANN announced the results of their [[Initial Evaluation]]. Such a model would allow losing bidders to receive 70% back from their ICANN application fee, but would pose difficulties if winning applicants later discovered their applications were rejected. Other applicants will have withdraw already, and the new gTLD would be left without an owner. The former model also lumped all TLDs that an individual applicant had applied for in one package. Criticisms stating that such a model would benefit larger companies led to a change, so that auctions will now proceed on a TLD-by-TLD basis, with all auctions being simultaneously resolved at the same time.<ref name="domainincite"></ref>

Proponents of the private auction model argue that it cheaper and quicker than the ICANN model, which should be used as a last resort.

Proponents of the private auction model argue that it cheaper and quicker than the ICANN model, which should be used as a last resort.