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VeriSign may settle CFIT lawsuit

Kevin Murphy, August 4, 2010, 13:40:36 (UTC), Domain Registries

VeriSign’s chief executive has not ruled out settling its potentially damaging lawsuit with the Coalition For ICANN Transparency out of court.

During the company’s second quarter earnings call earlier this week, Mark McLaughlin was asked whether there was a way the lawsuit could be made to go away, settling investor nerves.

His response: “It is an option that could be pursued.”

CFIT, backed by Momentous.ca, claims that VeriSign’s .com and .net no-bid contracts with ICANN, including the price increases they allow, are anti-competitive.

If VeriSign loses the case, it could face the loss of its .com and .net monopolies, which makes me think it will certainly seek to settle the case before that becomes a risk.

VeriSign currently has to decide whether to request a review at the Supreme Court, or go to the District Court for trial. It has until October 7 to make its call.

Also during Monday’s earnings call, McLaughlin addressed the growth opportunities VeriSign is looking at, following its renewed focus on the domain name business.

Asked whether the introduction of new TLDs would affect .com and .net growth, McLaughlin said:

I think it’s positive… just related to .com and .net, with the introduction of new TLDs there’s an expectation it just brings more people to the market and we generally do better when more people show up to the market. And the second thing, we intend to participate in some of those ourselves, so we see growth opportunities for us.

He also confirmed again that VeriSign will seek to launch non-ASCII internationalized versions of its existing TLD base, which includes .com, .net, tv and .name.

As Andrew Allemann noted yesterday, he also declared the pay-per-click-based speculative registration market essentially “dead”.

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Comments (4)

  1. jeff says:

    dumb dumb dumb – They should have kept that other core business….. Now if they lose the .com contract eventually eh… shareholders won’t be too happy.

  2. […] had until October 9 to make its mind up, but evidently did not need that […]

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