18(c) What operating rules will you adopt to eliminate or minimize social costs?

Prototypical answer:

18.3 WHAT OPERATING RULES WILL YOU ADOPT TO ELIMINATE OR MINIMIZE SOCIAL COSTS (E.G., TIME OR FINANCIAL RESOURCE COSTS, AS WELL AS VARIOUS TYPES OF CONSUMER VULNERABILITIES)?

Matrix IP LLC’s proposed operating rules to initially limit registration to SAS Institute and its qualified subsidiaries and affiliates will provide a trusted online environment for customers to access SAS Institute’s online content and, by default, will minimize social costs. This verified ecosystem will provide customers with a centralized, trusted source for SAS Institute goods and services with a substantially lower risk of fraud and⁄or scams.

Matrix IP LLC does not anticipate consumer vulnerabilities. In addition, there is no need for other trademark and brand owners to defensively register second-level domains in the gTLD. In fact, Matrix IP LLC’s expectation is that the usage of a .JMP gTLD will eliminate many of the vulnerabilities that SAS Institute customers and consumers face on the wider Internet today.

18.3.1 WHAT OTHER STEPS WILL YOU TAKE TO MINIMIZE NEGATIVE CONSEQUENCES⁄COSTS IMPOSED UPON CONSUMERS?

Matrix IP LLC believes that the proposed operation of the .JMP gTLD as set forth in this application has no known negative consequences or cost implications to consumers. To the contrary, the proposed operation of this registry will likely lead to direct and quantifiable benefits to consumers by providing a unified framework for the access to, and distribution of, SAS Institute’s goods and services, instead of the current patchwork of domain names registered across various gTLDs and ccTLDs.

18.3.2 HOW WILL MULTIPLE APPLICATIONS FOR A PARTICULAR DOMAIN NAME BE RESOLVED, FOR EXAMPLE, BY AUCTION OR ON A FIRST-COME⁄FIRST-SERVE BASIS?

Matrix IP LLC does not envision multiple applicants for the same domain name, as domain names will initially only be allocated to SAS Institute and its qualified subsidiaries and affiliates.

18.3.3 EXPLAIN ANY COST BENEFITS FOR REGISTRANTS YOU INTEND TO IMPLEMENT (E.G., ADVANTAGEOUS PRICING, INTRODUCTORY DISCOUNTS, BULK REGISTRATION DISCOUNTS).

Matrix IP LLC does not envision any pricing, introductory, or bulk registration discounts because these marketing⁄commercial initiatives are inconsistent with the mission and purpose of the .JMP gTLD as a trusted online source identifier. However, should Matrix IP LLC, at some future date, consider permitting third parties (customers) to register domain names in the .JMP gTLD, Matrix IP LLC would reevaluate this practice at that time.

18.3.4 NOTE THAT THE REGISTRY AGREEMENT REQUIRES THAT REGISTRARS BE OFFERED THE OPTION TO OBTAIN INITIAL DOMAIN NAME REGISTRATIONS FOR PERIODS OF ONE TO TEN YEARS AT THE DISCRETION OF THE REGISTRAR, BUT NO GREATER THAN TEN YEARS. ADDITIONALLY, THE REGISTRY AGREEMENT REQUIRES ADVANCE WRITTEN NOTICE OF PRICE INCREASES. DO YOU INTEND TO MAKE CONTRACTUAL COMMITMENTS TO REGISTRANTS REGARDING THE MAGNITUDE OF PRICE ESCALATION? IF SO, PLEASE DESCRIBE YOUR PLANS.

Matrix IP LLC is committed to providing the domain name registration periods set forth in the Registry Agreement. However, as noted above, because this will be a branded gTLD, the registration and use of the domain name is conditioned upon a separate contractual relationship with SAS Institute. Therefore, providing contractual commitments in a domain name registrant agreement regarding the magnitude of price escalations does not seem relevant or appropriate. That said, the .JMP domain agreements will be in accordance with all ICANN requirements.

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