Cost recovery for RSTEP: Overview, definition, and example
What is cost recovery for RSTEP?
Cost recovery for RSTEP refers to the process by which ICANN (the Internet Corporation for Assigned Names and Numbers) recoups expenses incurred when reviewing proposed registry services through the Registry Services Technical Evaluation Panel (RSTEP). This evaluation is required when a registry operator submits a service request that may raise security, stability, or competition concerns within the Domain Name System (DNS).
For example, if a TLD registry proposes a new domain allocation method that could impact DNS stability, ICANN may initiate an RSTEP review. The registry operator is then responsible for covering the associated evaluation costs.
Why is cost recovery for RSTEP important?
Cost recovery for RSTEP is important because it ensures that ICANN does not bear the financial burden of evaluating registry service proposals. The cost structure discourages unnecessary or speculative submissions while ensuring that only serious proposals undergo technical and policy scrutiny.
For registry operators, understanding cost recovery obligations is crucial for financial planning when proposing new services. This system also ensures that DNS security and stability reviews are properly funded, maintaining the integrity of the internet’s infrastructure.
Understanding cost recovery for RSTEP through an example
Imagine a domain registry operator managing a .bank TLD wants to introduce a new security protocol that changes how domain names are validated. ICANN determines that this proposal may impact DNS stability, triggering an RSTEP review. The registry must pay the evaluation costs, which include technical analysis and expert consultation. If the service is approved, the registry can implement it, but if rejected, the costs are non-refundable.
In another scenario, a new TLD operator applies to modify its registration policies, potentially affecting competition among registrars. ICANN requires an RSTEP review to assess the implications, and the registry operator is responsible for covering all related costs as part of the evaluation process.
Example of a cost recovery for RSTEP clause
Here’s how a cost recovery for RSTEP clause might appear in a registry agreement:
“The Registry Operator acknowledges that any proposed registry service requiring evaluation by the Registry Services Technical Evaluation Panel (RSTEP) shall be subject to cost recovery by ICANN. The Registry Operator agrees to bear all associated costs of the evaluation, including but not limited to expert review fees, administrative processing costs, and technical assessments. Payment of these costs does not guarantee approval of the proposed service.”
Conclusion
Cost recovery for RSTEP ensures that registry operators bear the financial responsibility for technical evaluations of proposed services, preventing unnecessary financial strain on ICANN. By covering these costs, registry operators contribute to maintaining the security, stability, and competitive fairness of the Domain Name System. Understanding these obligations is essential for registry operators considering new service implementations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.