Smith v. Network Solutions, Inc.

135 F. Supp. 2d 1159, 2001 U.S. Dist. LEXIS 3312, 2001 WL 286752
CourtDistrict Court, N.D. Alabama
DecidedMarch 22, 2001
DocketCV 00-BU-2769-S
StatusPublished
Cited by13 cases

This text of 135 F. Supp. 2d 1159 (Smith v. Network Solutions, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Network Solutions, Inc., 135 F. Supp. 2d 1159, 2001 U.S. Dist. LEXIS 3312, 2001 WL 286752 (N.D. Ala. 2001).

Opinion

Memorandum Opinion

BUTTRAM, District Judge.

In his third amended complaint in the above-styled action, Plaintiff Stan Smith seeks injunctive relief under section 16 of the Clayton Act, 15 U.S.C. § 26, on behalf of himself and a putative class based on allegations that Defendants Network Solutions, Inc. (“NSI”) and VeriSign, Inc. ("VeriSign”) have intentionally maintained an unlawful monopoly, in violation of section 2 of the Sherman Act, 15 U.S.C. § 2. Now pending before the Court are the following four motions: Defendants’ motion for summary judgment, or in the alternative, for dismissal of all claims (Doc. No. 22); Plaintiffs motion for class certification (Doc. No. 18); Defendants’ motion to strike portions of Plaintiffs evidentiary submission in support of his motion for class certification (Doc. No. 46); and Plaintiffs motion to vacate the Court’s prior order of February 1, 2001 granting Defendants’ motion to strike and for protective order (Doc. No. 61). For the reasons set forth below, the Court concludes that Defendants’ motion for summary judgment is due to be GRANTED and that Plaintiffs motion to vacate the Court’s order granting Defendants’ motion to strike and for protective order is due to be DENIED. Plaintiffs motion for class certification and Defendants’ motion to strike portions of Plaintiffs evidentiary submission in support of Plaintiffs motion for class certification are both MOOT.

I. BACKGROUND

This case concerns the registration and availability of domain names, which are constructs used to identify and locate computer addresses on the Internet. Plaintiff is a computer programmer and self-styled “Internet entrepreneur.” After unsuccessfully attempting to register various domain names, he filed this action claiming that Defendants NSI and VeriSign maintain an unlawful monopoly by failing to make publicly available domain names that have “expired” in the sense that the prior registrant of each name has failed to pay a registration renewal fee on or before a “record expires” date, which corresponds to the registration anniversary in the year through which the prior registrant had paid NSI to keep each name under registration.

Each entity connected to the Internet has a unique address known as an Internet Protocol, consisting of a string of numbers connected by dots that is readable by computers. For ease of human use, the domain name system was developed whereby alpha-numeric character strings correspond to Internet Protocol addresses. 1 Each domain name consists of a combination of a Top Level Domain (“TLD”) and Second Level Domain (“SLD”) name, which are separated by a period known as a “dot.” TLDs, which are found to the *1161 right of the dot in the address, generally, but not necessarily, indicate the country location or type of entity operating a web address. There are approximately 240 TLDs, but there are four that have primarily been used by the public in the United States. These are: “.com,” often reflecting a commercial entity; “.org,” which generally suggests a not-for-profit organization; “.net,” indicating an entity involved in the Internet network; and “.edu.” which normally corresponds to an educational institution. An SLD name is a string of numbers and/or letters immediately to the left of the dot in the address that is created and chosen by the registrant, ie., the individual or organization operating the Internet address. For instance, in the domain name “example.com,” “.com” is the TLD and “example” is the SLD name.

The registration of non-military domain names began in earnest in April 1993, when Defendant NSI commenced operating as the sole registrar of SLD names for the “.com,” “.org,” “.net,” and “.edu” TLDs. NSI obtained that exclusive status by virtue of a contract it secured with the National Science Foundation through a competitive bid process. In 1998, the federal government, through the Department of Commerce, published a statement of policy to effect a transition to a competitive system of domain name registration. In furtherance of this policy, a private, non-profit corporation, the Internet Corporation for Assigned Names and Numbers (“ICANN”), was formed to assume responsibilities for managing the allocation of Internet Protocol numbers and the domain name system. Also as part of the transition to a competitive system, NSI’s domain name registration service was divided into two separate units: a registrar and a registry. The registrar unit of NSI is the entity through which the individuals and organizations that are the end users of the Internet apply for and register domain names. In June 1999, five companies in addition to NSI began providing competing registrar services after entering into accreditation agreements with ICANN. There are now about 80 accredited registrars in active operation. The registry unit (“the Registry”) is, by contrast, the only entity of its land. It maintains the centralized “WHOIS” database of all registered SLD names in the “.com,” “.org,” and “.net” TLDs, compiled from the registrations in those TLDs submitted by all registrars, including NSI’s registrar unit. Thus, the Registry directly interacts with and serves registrars, rather than end-users of the Internet.

On June 8, 2000, NSI became a wholly-owned subsidiary of Defendant VeriSign, and the Registry was subsequently renamed VeriSign Global Registry Services. However, the record indicates that NSI’s registrar unit and the Registry are still organized and operated as separate divisions within NSI, notwithstanding the latter division’s use of the name of NSI’s corporate parent. There are approximately 24 to 30 million domain names under registration. About 14 million of these have been registered through NSI’s registrar unit, 2 which is more than any other individual registrar.

When an individual or an organization desires to register a domain name, it may do so through any accredited registrar. Generally, this is done through the submission of an electronic registration applica *1162 tion submitted at a registrar’s online address. The applicant first chooses one of the TLDs offered by the registrar and then creates an accompanying SLD name, thereby fashioning a potential domain name, which is then submitted electronically to the registrar for approval. However, no two SLD names within a given TLD can be identical. Accordingly, if someone submits an application for a particular domain name that already exists in the Registry WHOIS database by virtue of a prior registration, that name cannot be registered again, and the applicant is advised that the sought domain name is unavailable. The applicant may then choose to submit an application for an alternate domain name, either by changing or adding or subtracting a letter(s) or number(s) or a dash(es) to his initially submitted SLD name within the same TLD, or by going to another TLD where the initially submitted SLD name is still available. 3 If there is no existing registration for a given SLD name within a given TLD, that domain name is considered available and generally may be registered on a first-come, first served basis.

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Bluebook (online)
135 F. Supp. 2d 1159, 2001 U.S. Dist. LEXIS 3312, 2001 WL 286752, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-network-solutions-inc-alnd-2001.