Re: Monopoly/Ologopoly

["Leo Smith" <barter@ntplx.net>]

Hi Dave...
Maybe a comparison helps illustrate the difference: when the National
Football League decides how to market the rights to televise the SuperBowl,
it could elect to market the broadcasting rights on a non-exclusive basis
to all television networks, with the aim of increasing NFL viewership. The
value that ABC, CBS, NBC, Fox or ESPN would place on the broadcasting
rights to the superbowl would be radically different (less) for a
non-exclusive license than for an exclusive license. The exclusive license
is more valuable. The higher the value of the license, the more investors
are willing to risk. As a prerequisite to operating a registry, a
substantial investment is required in terms of capital and human resources.
An exclusive license, with its higher value, offers the licensee the best
opportunity to protect that investment and make a profit.

It's not to say that a non-exclusive licensing agreement can't work. From
the prospective of the licensee, however,  the number of licensees that
would find a non-exclusive license to be more desirable than an exclusive
one probably corresponds to the number of TV networks that would prefer to
share the advertising revenue from the superbowl with a competing network.
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From: Dave Crocker <dcrocker@imc.org>
To: Leo Smith <barter@ntplx.net>
Cc: Kent Crispin <kent@songbird.com>; iahc-discuss@iahc.org
Subject: Re: Monopoly/Ologopoly
Date: Monday, December 23, 1996 10:57 AM

At 6:09 AM -0800 12/23/96, Leo Smith wrote:
>Valid point...To achieve the objective outlined above, IAHC should require
>that as a condition of the exclusive licensing agreement, each licensee
>must agree to sublicense all other CORE members at a specified wholesale
>rate. When the registry in Indonesia receives its license, it
automatically

	at that point, I'm quite unclear why it is not just as good to have
all of the gTLDs be shared directly, rather than doing this
cross-licensing.

d/


(read the last line, please)
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Also:  IAHC member, expressing strictly (or loosely) personal opinions

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