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Auerbach Weighs in for gTLD Lotteries
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A brief response:
First, as the root expands business failures are inevitable.
Second, I don't think ICANN will try to keep failed TLDs alive as "going concerns," but it might try to keep alive a static version of the TLD--no new registrations, but for a fee, the SLD owner could point to a new IP address and renew the registration. I do not favor this, but I think it may well be the option that ICANN chooses.
Third, Karl is absolutely right. ICANN needs to decide whether it is a consumer protection agency, or whether it should simply allow the market to operate.
Fourth, if ICANN decides the failed TLDs will be kept alive in vestigal form as a consumer protection measure, that decision means that the root resource becomes more scarce.
I would like to thank Karl for his very helpful contribution to my understanding of this issue. Lawrence Solum
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