STATEMENT ON THE CHANGE OF DISTRIBUTION METHODS FOR .BIZ DOMAIN NAMES ON REGISTRY RESERVE

OVERVIEW

The distribution process for .BIZ domain names has been the subject of litigation in the Los Angeles Superior Court in the State of California. This lawsuit against NeuLevel, the Internet Corporation for Assigned Names and Numbers ("ICANN"), and most of the .BIZ-Accredited Registrars, alleges among other things, that the method for assigning domain names during the start-up period constitutes an illegal lottery under California law. NeuLevel has always believed, and still does believe, that the initial domain name application process for .BIZ domain names was the most fair and equitable way to distribute these domain names and complied with all applicable laws.

Most of the .BIZ domain names for which NeuLevel received domain name applications became operational on October 1st, 2001. However, as a result of the pending litigation, NeuLevel delayed the randomization of those domain names for which there were multiple applicants ("Affected Names"). NeuLevel believes that there is a strong likelihood that the litigation could tie up the Affected Names for many months, if not years. In the interest of having the Affected Names available as soon as possible, regardless of the final outcome of the litigation, NeuLevel has developed an alternative method for the distribution of the Affected Names. NeuLevel believes this operational change, which has been developed in consultation with the ICANN, benefits the global Internet business community as a whole.

To determine if a domain name is one of the Affected Names, please go to www.whois.biz and search the name in question. If Domain Status is on "Server Hold" AND the Registrant contact information contains the word "Pending," then the domain name is one of the Affected Names.

NEW ROUND-ROBIN PROCESS

STEP 1: Acceptance of New Domain Name Applications

NeuLevel has begun accepting new domain name applications for the Affected Names from .BIZ-Accredited Registrars participating in the Round-Robin process. NeuLevel will accept these submissions from the Registrars until March 4, 2002.

STEP 2: Matching Applications Against IP Claim Database

After receiving all of the new domain name applications for the Affected Names, NeuLevel will match each of the domain name applications against the existing IP claim database. If the domain name in an application exactly matches a domain name for which there was an intellectual property claim, NeuLevel will send an e-mail notice directly to the domain name applicant notifying the individual of the conflict. As with the initial .BIZ domain name application process, this notification will include the IP claimant's alleged trade or service mark, its contact information, the date the trade or service mark was first used, and whether the mark is registered, applied for, or protected under common law.

STEP 3: Proceed/Cancel Process

In order to proceed with the domain name application, a domain name applicant that receives a conflict notice must elect to proceed with the application despite being notified of its own, or a third parties' intellectual property rights. NOTE: A DOMAIN NAME APPLICANT MUST ELECT TO PROCEED EVEN IF THE ONLY CONFLICT CONTAINED WITHIN THE CONFLICT NOTICE IS THE APPLICANT'S OWN INTELLECTUAL PROPERTY CLAIM.

In order to proceed with the application, an applicant needs to follow the instructions on the conflict notice. A domain name applicant will have approximately 2 weeks beginning on March 11, 2002 to make their selection.

If an applicant does not wish to proceed with the application, the individual may disregard the conflict notice and/or delete it. THUS, IF A DOMAIN NAME APPLICANT DOES NOT RESPOND, THE APPLICATION WILL BE CANCELLED.

STEP 4: Round Robin Selection Process

All applications (i) for which there were one or more IP claims and the applicant elected to proceed; or (ii) that did not match an IP claim, will be categorized ("Queued") by the participating registrar. All of the domain names in each registrar's Queue shall be randomized by NeuLevel in preparation for the Round Robin selection process.

The Round Robin selection process shall consist of a series of selection rounds. Prior to the start of each round, the selection order for the registrar Queues shall be randomized. During each round, domain name applications matching a previously selected domain name shall be discarded from the selection pool and shall result in a "lost turn" for that round for that participating registrar. The Round Robin process shall continue until the last domain name in the last registrar queue has been analyzed.

STEP 5: Domain Name Selection and Go-Live (End of March 2002)

Once selected in the Round-Robin process described above, a domain name application will be registered. If the newly registered domain name matches an IP claim that was submitted, the registration will be placed on hold for 30 days. This means that the domain name will not be operational during this period nor will it be transferred to another party. Furthermore, in the event that the registrant is a business that is not the same as the IP claimant, the registrant may be subject to the Start-up Trademark Opposition Policy (STOP). For more information about the STOP policy, please go to: www.neulevel.biz/stop_overview/index.html.

If a registration contains a domain name that did not match an IP claim, the domain name will be registered, listed in the WHOIS database and immediately available for use by the domain name registrant.

Please check NeuLevel's web site, www.neulevel.biz, for any updates and further details.

Please note: This process has no effect on .BIZ domain names that are already registered and live. If the domain name is registered in the whois with your contact information and is not "pending," then it is not affected in any way by the above process.

All dates are subject to change.

ADDITIONAL INFORMATION - FAQS

For more information, please read the Change of Distribution Methods for .BIZ Names on Registry Reserve FAQS.

Main .BIZ FAQs Page