Neighborhood Name License, part 1 – CAUTION: “Without Cause”

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(Commons Photo courtesy of sporkwrapper.)Jackson Heights, New York, February 2, 2016 – The deBlasio Administration’s licensing initiative for the neighborhood domain names is currently accepting applications. So if you’re a neighborhood activist or budding media mogul, and want to activate Astoria.nyc, ConeyIsland.nyc, GreenwichVillage.nyc, Harlem.nyc or any of the 380 other reserved neighborhood domain names, submit your applications now. (Here’s the application.) Successful applicants will be notified on February 12.

While we’re extremely supportive of the initiative, there’s a clause in the draft Licensing Agreement that diminishes the likelihood of serious parties investing the necessary resources, a “without cause” clause in Section 3.b of the draft Agreement which states:

Either party may terminate this License Agreement without cause (effective immediately);

We wrote the mayor’s office about our concerns (this one and a few others that we’ll post on soon) and were told they were reviewed “with the Law Department and while we are unable to amend the terms per your request, we have certainly noted your requests.” So seemingly, while the version of the Licensing Agreement shared with us says “DRAFT—NON-FINAL & DELIBERATIVE,” so far it seems changes will come from the city sans consultation with residents.

As we stated above, we love the “dotNeighborhoods” and see them providing a fantastic opportunity to improve engagement and provide a civic toolbox that will facilitate innovation and improve the quality of life. (See our Adding Internet Mojo To Neighborhoods pages.) Indeed, we gave serious thought to applying for the JacksonHeights.nyc domain, but the “without cause” clause forced us to hold off. How could we approach investors and garner the necessary resources without the city providing a serious commitment?

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UPDATE, February 5, 2016

This past December we contacted several elected officials about the “Without Cause” clause and the hardship it would impose on an entity seeking to garner the resources to undertake the development of a dotNeighborhood in a serious manner. We heard back from one recently, who informed us that in checking with their office’s attorneys, they were told that this was a standard clause in all city contracts. We checked the city’s agreement with Neustar Inc., the holder of the contract to operate the .nyc TLD for the city, and found no such reference. (See the city’s contracts with Neustar here.) When told of our finding a representative from the same city official said their office had received complaints from others about the situation and would be looking into it.

We don’t doubt that eager city lawyers try to impose a ‘Without Cause” clause whenever they can. And perhaps they sometimes impose it. But if the administration is serious about adding the Internet’s capabilities to improving the economic and social quality of life in our city’s neighborhoods, this clause has got to be removed “Without Delay.”

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  1. Kathleen Hulser  February 28, 2016

    Helpful to know this, even if I only saw it rather late in process. Agree that stability in holding onto domain name is key. And NYC has been known to retaliate against those it dislikes, so the termination provision without cause is a worrisome clause.

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