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Line 32: − + − + − + − − ===Right of the Dot=== − [[Right of the Dot]] suggests three models, though it stresses that it is a flexible consultancy with experience to work out unique remediation processes as well. The three auction models are an ascending clock model, a sealed bid, and a live auction. An ascending clock model, is they type to be used by [[ICANN]] in its last resort auctions and the only model offered by competitive provider [[Cramton Associates]]. Right of the Dot recommends the sealed bid auction, which sees each applicant submitting a sealed bid, the highest bidder wins and pays the amount of the second highest bid. It also recommends that the proceeds are not distributed evenly but proportionate with the bid made by each loser.<ref name="CircleID Article">[http://www.circleid.com/posts/20130122_contention_is_best_settled_by_those_who_know_the_players_industry/ Contention is Best Settle By Those Who Know the Players Industry, CircleID.com] Published Jan 22, Retrieved Jan 24</ref> Live auctions are held in real time as bidders shout out or submit electronic bids. One of Right of the Dot's overall goals is to offer applicants "flexibility", and cater to the "desires of the participants".<ref name="CircleID Comments">[http://www.circleid.com/posts/20130102_private_vs_icann_auction_of_last_resort/ Comments by Mike Berkens, Private vs. ICANN Auction of Last Resort, CircleID.com]Posted jan 2 2013, Retrieved Jan 7 2013</ref> In comments on a [http://www.circleid.com/posts/20130102_private_vs_icann_auction_of_last_resort/ CircleID Post] by [[New gTLD Program|new gTLD applicant]] [[Raymond King]], Mike Berkens of Right of the Dot claims that their main opponent, [[Cramton Associates]], is restrictive, writing: "the other auction solution is offered only during highly restricted time frames, and in a highly restricted manner, which we think was designed in mind with the those with largest number of applications." He goes on to say: "We believe that other auction solutions are overly complex and overbearing [which] we believe is more subject to game playing and over paying by winning bidders. We think each auction should stand on its own; each participant should know what their fees will be based on their own auction(s) not be based off auctions they are not participating in; and most importantly should be held at the time and in the manner in which the applicants to each string desire." Their flexibility is extended to the point that Right of the Dot offers to design unique auctions if requested by the applicants.<ref name="ROTD About">[http://rightofthedot.com/gtld-contention/ gTLD Contention RightOfTheDot.com]Retrieved 7 Jan 2013</ref> − − Further options that the team will facilitate include giving the proceeds of the auction to a third party charity.<ref name="CircleID Article"></ref> − − Right of the Dot has partnered with [[Escrow.com]] to facilitate their auctions. The auction fees begin at 4% and depend on the auction model selected.<ref name="ROTD About"></ref> − − The company is led by [[Monte Cahn]] and [[Mike Berkens]], two very well-known [[domainer]]s and industry veterans. They note that they have 17 years of domain auction knowledge and experience and have conducted tens of thousands of auctions. They emphasize their industry knowledge and personal connections are a unique asset that they bring to bear, and believe it will empower them to bring more applicants to the table compared to non-industry service providers.<ref name="CircleID Comments"></ref> Right Of The Dot has received an Auction Business License for Contention Resolution Services by the State of Florida Department of Business and Professional Regulation for the exact purpose of: New TLD Contention Resolution and Consulting Services including Private Auction Services for competing applicants, Internet Domain Name Auctions, Sales, Brokerage, and Management Services.<ref name="ROTD About"></ref> [[Right of the Dot]] is not only offering auction services, but an entire full-service gTLD consultancy, from positioning the domain pre-launch to guiding it through managed and unique launch programs, identifying premium names for auction, later traffic and domain monetization, and beyond. They have secured a number of high-profile partners, such as [[Architelos]], to assist them in their work.<ref>[http://rightofthedot.com/about/ About, RightOfTheDot.com]Retrieved 7 Jan 2013</ref> Line 58:
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→Private Auctions
==Private Auctions==
==Private Auctions==
Numerous companies have surfaced to offer private auction models, including [[Sedo]], [[Cramton Associates]], and [[Right of the Dot]]. All offer variations on implementation and services but also share commonalities in their proposed models. The 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 [[Innovative Auctions]], [[Right of the Dot]], and [[Sedo]]. All offer variations on implementation and services but also share commonalities in their proposed models. The winner will pay the amount of the second-highest bid, split either equally or proportionally between the losing applicants.<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 for a contention set must agree to participate in order for a private auction to proceed; otherwise, the contention set will be managed via ICANN's Last Resort Auction.
Applicants also have to decide on when they wish to enter into private auctions. Those who withdraw their applications before ICANN posts its Initial Evaluation results will receive a 70% refund of their $185,000 application fee; those who wait until after the IE stage will only receive a 35% refund.<ref name="worldipreview"></ref>
Applicants also have to decide when they wish to enter into private auctions. Those who withdraw their applications before ICANN posts its Initial Evaluation results will receive a 70% refund of their $185,000 application fee; those who wait until after the IE stage will only receive a 35% refund.<ref name="worldipreview"></ref>
Benefits of the private auction model include the following:<ref name="circleid">[http://www.circleid.com/posts/20121203_gtld_contention_set_auctions_private_auction_alternatives/ gTLD Contention Set Auctions: Private Auction Alternatives], CircleID.com. Published 3 December 2012. Retrieved 6 December 2012.</ref>
Benefits of the private auction model include the following:<ref name="circleid">[http://www.circleid.com/posts/20121203_gtld_contention_set_auctions_private_auction_alternatives/ gTLD Contention Set Auctions: Private Auction Alternatives], CircleID.com. Published 3 December 2012. Retrieved 6 December 2012.</ref>
* Jurisdiction: Enforcement of agreements across jurisdictions could be challenging, particularly if a participant fails to make good on its agreement.
* Jurisdiction: Enforcement of agreements across jurisdictions could be challenging, particularly if a participant fails to make good on its agreement.
* Funding: According to a CircleID article: "In the case where applicants have numerous strings in contention, a portion of the winning bid will be paid to non-winning applicants that can be used in subsequent auctions in which the winning bidder will be participating in. For example, if Company X is the winning bid for Auction A against Company Y and later, Company X and Company Y are in Auction B, Company Y now has additional funds received from Company X to use in Auction B."
* Funding: According to a CircleID article: "In the case where applicants have numerous strings in contention, a portion of the winning bid will be paid to non-winning applicants that can be used in subsequent auctions in which the winning bidder will be participating in. For example, if Company X is the winning bid for Auction A against Company Y and later, Company X and Company Y are in Auction B, Company Y now has additional funds received from Company X to use in Auction B."
* Participation: All parties within a contention set must agree and participate.
* Participation: All parties within a contention set must agree to participate.
* Failure: If a bid is entered early and the winning bidder fails to pass ICANN's evaluation process, the string could go unclaimed.
* Failure: If a bid is entered early and the winning bidder fails to pass ICANN's evaluation process, the string could go unclaimed.
[[Donuts]] co-founder [[Jon Nevett]] says that Donuts will handle as many of its contention sets as possible via this method, as auctions will be cheaper and faster for applicants than ICANN's original method. "The cost of losing an ICANN auction is greater than the cost of losing a private auction," Nevett said. "If you lose an ICANN auction you get nothing, zero, you lose your asset... [but with private auctions] it doesn't hurt as much to lose, so the theory is the second-place guys won't stretch as much."<ref name="domainincite"></ref>
[[Donuts]]Co-founder [[Jon Nevett]] says that Donuts will handle as many of its contention sets as possible via this method, as auctions will be cheaper and faster for applicants than ICANN's original method. "The cost of losing an ICANN auction is greater than the cost of losing a private auction," Nevett said. "If you lose an ICANN auction you get nothing, zero, you lose your asset... [but with private auctions] it doesn't hurt as much to lose, so the theory is the second-place guys won't stretch as much."<ref name="domainincite"></ref>
CEO of Top Level Domain Holdings [[Antony Van Couvering]] has come out in support of private auctions over ICANN auctions. In a article written on June 3rd, 2013 he discusses the benefits and drawback of each model. ICANN auctions would only deplete money from applicants, he argues, which could be used for marketing, research, and technology.<ref>[http://www.circleid.com/posts/20130603_icann_auctions_or_private_auctions/ icann or private auctions] Published 3 Jun 13 Retrieved 4 Jun 13</ref>
CEO of Top Level Domain Holdings [[Antony Van Couvering]] has come out in support of private auctions over ICANN auctions, as well. In a article written on June 3, 2013, he discussed the benefits and drawback of each model. ICANN auctions would only deplete applicants' funds, he argues, which could be used for marketing, research, and technology.<ref>[http://www.circleid.com/posts/20130603_icann_auctions_or_private_auctions/ icann or private auctions] Published 3 Jun 13 Retrieved 4 Jun 13</ref>
===Applicant Auction===
===Applicant Auction===
[[Cramton Associates]]' model is preferred by many applicants, including the largest [[TLD]] applicant, [[Donuts]].<ref>[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 Contention Fights, DomainIncite.com]Published 23 Oct 2012, Retrieved 8 Jan 2013</ref> [[Raymond King]], applicant for 10 TLDs with [[Top Level Design]] expressed his favor for Private Auctions in general, and Cramton Associates specifically, in an [http://www.circleid.com/posts/20130102_private_vs_icann_auction_of_last_resort/ opinion piece on CircleID].
[[Cramton Associates]]' model is preferred by many applicants, including the largest [[TLD]] applicant, [[Donuts]].<ref>[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 Contention Fights, DomainIncite.com]Published 23 Oct 2012, Retrieved 8 Jan 2013</ref> [[Raymond King]], applicant for 10 TLDs with [[Top Level Design]] expressed his favor for Private Auctions in general, and Cramton Associates specifically, in an [http://www.circleid.com/posts/20130102_private_vs_icann_auction_of_last_resort/ opinion piece on CircleID].
===Right of the Dot===
[[Right of the Dot]] suggests three models, though it stresses that it is a flexible consultancy with experience to work out unique remediation processes as well. The three auction models are an ascending clock model, a sealed bid, and a live auction. An ascending clock model, is they type to be used by [[ICANN]] in its last resort auctions and the only model offered by competitive provider [[Cramton Associates]]. Right of the Dot recommends the sealed bid auction, which sees each applicant submitting a sealed bid, the highest bidder wins and pays the amount of the second highest bid. It also recommends that the proceeds are not distributed evenly but proportionate with the bid made by each loser.<ref name="CircleID Article">[http://www.circleid.com/posts/20130122_contention_is_best_settled_by_those_who_know_the_players_industry/ Contention is Best Settle By Those Who Know the Players Industry, CircleID.com] Published Jan 22, Retrieved Jan 24</ref> Live auctions are held in real time as bidders shout out or submit electronic bids. One of Right of the Dot's overall goals is to offer applicants "flexibility", and cater to the "desires of the participants".<ref name="CircleID Comments">[http://www.circleid.com/posts/20130102_private_vs_icann_auction_of_last_resort/ Comments by Mike Berkens, Private vs. ICANN Auction of Last Resort, CircleID.com]Posted jan 2 2013, Retrieved Jan 7 2013</ref> In comments on a [http://www.circleid.com/posts/20130102_private_vs_icann_auction_of_last_resort/ CircleID Post] by [[New gTLD Program|new gTLD applicant]] [[Raymond King]], Mike Berkens of Right of the Dot claims that their main opponent, [[Cramton Associates]], is restrictive, writing: "the other auction solution is offered only during highly restricted time frames, and in a highly restricted manner, which we think was designed in mind with the those with largest number of applications." He goes on to say: "We believe that other auction solutions are overly complex and overbearing [which] we believe is more subject to game playing and over paying by winning bidders. We think each auction should stand on its own; each participant should know what their fees will be based on their own auction(s) not be based off auctions they are not participating in; and most importantly should be held at the time and in the manner in which the applicants to each string desire." Their flexibility is extended to the point that Right of the Dot offers to design unique auctions if requested by the applicants.<ref name="ROTD About">[http://rightofthedot.com/gtld-contention/ gTLD Contention RightOfTheDot.com]Retrieved 7 Jan 2013</ref>
Further options that the team will facilitate include giving the proceeds of the auction to a third party charity.<ref name="CircleID Article"></ref>
Right of the Dot has partnered with [[Escrow.com]] to facilitate their auctions. The auction fees begin at 4% and depend on the auction model selected.<ref name="ROTD About"></ref>
The company is led by [[Monte Cahn]] and [[Mike Berkens]], two very well-known [[domainer]]s and industry veterans. They note that they have 17 years of domain auction knowledge and experience and have conducted tens of thousands of auctions. They emphasize their industry knowledge and personal connections are a unique asset that they bring to bear, and believe it will empower them to bring more applicants to the table compared to non-industry service providers.<ref name="CircleID Comments"></ref> Right Of The Dot has received an Auction Business License for Contention Resolution Services by the State of Florida Department of Business and Professional Regulation for the exact purpose of: New TLD Contention Resolution and Consulting Services including Private Auction Services for competing applicants, Internet Domain Name Auctions, Sales, Brokerage, and Management Services.<ref name="ROTD About"></ref> [[Right of the Dot]] is not only offering auction services, but an entire full-service gTLD consultancy, from positioning the domain pre-launch to guiding it through managed and unique launch programs, identifying premium names for auction, later traffic and domain monetization, and beyond. They have secured a number of high-profile partners, such as [[Architelos]], to assist them in their work.<ref>[http://rightofthedot.com/about/ About, RightOfTheDot.com]Retrieved 7 Jan 2013</ref>
===Sedo===
===Sedo===