Challenge to Network Solutions' Role as Domain Name Registrar Dismissed in Federal Court Decision.HERNDON, Va.--(BUSINESS WIRE)--April 9, 1998-- Ruling Supports Collection of Fees For Registration Services Network Solutions, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :NSOL) today welcomed the decision by the Honorable Thomas F. Hogan hogan Dwelling of the Navajo Indians of Arizona and New Mexico. The hogan is roughly circular and constructed usually of logs, which are stepped in gradually to create a domed roof. , U.S. District Court Judge in the United States District Court for the District of Columbia The United States District Court for the District of Columbia is the United States District Court that hears cases originating in the District of Columbia over which federal courts have original jurisdiction. , affirming Network Solutions' role to provide domain name registration services and collect fees for such services by dismissing nine of ten counts of the class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax filed by William Thomas William Thomas or Bill Thomas may refer to:
NSI - Network Solutions, Inc. ). "We are very pleased with this decision as it relates to Network Solutions," said Gabe Battista, Chief Executive Officer of Network Solutions, Inc. "This decision amounts to business as usual for Network Solutions by affirming that our position as the exclusive registrar of domain names in .com .net .org and .edu is legally constituted and that NSI can charge a market rate for providing its services. The decision is also a clear statement that Network Solutions can continue to provide a stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. influence on the ever growing Internet." The lawsuit filed in October 1997 named the National Science Foundation and Network Solutions as defendants alleging that the National Science Foundation lacked authority to permit Network Solutions to charge for Internet registration services, and to set aside 30 percent of all fees for the preservation and enhancement of the Internet's infrastructure. The suit further charged that the National Science Foundation had created an illegal monopoly in Internet registration services and that Network Solutions had illegally precluded competition. The single count not dismissed by Judge Hogan involves the Infrastructure Fund portion of the fee which will have no impact on Network Solutions' revenue and earnings, since it was set aside in a separate account and was never counted as part of NSI's revenue. The Infrastructure Fund was set aside for the preservation and enhancement of the Internet and represented 30 percent of domain name registration and renewal fees. At issue is the government's right to use the fund. Judge Hogan reserved judgement on the issue of potential damages or other appropriate relief with regard to the Infrastructure Fund until a further court ruling. Judge Hogan also recognized that Congress still retains the power to ratify ratify v. to confirm and adopt the act of another even though it was not approved beforehand. Example: An employee for Holsinger's Hardware orders carpentry equipment from Phillips Screws and Nails although the employee was not authorized to buy anything. the Infrastructure Fund by legislative action. In response to the Department of Commerce's draft paper, "A Proposal to Improve Technical Management of Internet Names and Addresses," the National Science Foundation amended NSI's cooperative agreement to eliminate the Infrastructure Fund portion of fees for all new registrations and renewal anniversaries on or after April 1, 1998. Founded in 1979, Network Solutions, Inc. (NASDAQ:NSOL) registers Internet domain addresses ending in .com, .net, .org and .edu, pursuant to a cooperative agreement with the National Science Foundation. NSI also provides enterprise network consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , focusing on network engineering, network security and network management solutions for commercial customers. For more information, see http://www.netsol.com or http://www.worldnic.com. CONTACT: Network Solutions Cheryl Regan, 703/742-4847 (Media) cherylr@netsol.com or Bob Korzeniewski, 703/742-4754 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) bobk@netsol.com |
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