Business Editors/High-Tech Writers
NEW YORK--(BUSINESS WIRE)--Jan. 28, 2004
Verio Barred from Using Deceptive Marketing Tactics and from
Abusing Register.com's Whois Database
Register.com, Inc. (NASDAQ: RCOM), a leading provider of global domain name registration and Internet services, today announced that the United States Court of Appeals for the Second Circuit affirmed the preliminary injunction granted by the United States District Court, Southern District of New York, against Verio, Inc., a Colorado-based web hosting company and subsidiary of NTT Communications (NYSE: NTT).
As a result of the Second Circuit's decision, Verio remains barred from mining Register.com's Whois database to target Register.com customers with unsolicited commercial email, direct mail and telemarketing activity, pending a final decision on the merits of Register.com's claims. Verio also remains prohibited from engaging in conduct that misleads Register.com's customers into believing that Register.com is affiliated with Verio or its services.
"We are devoted to protecting our customers from those who intentionally mislead them by exploiting our brand," said Peter Forman, President & CEO of Register.com. "The Court's decision vindicates our position and shows that we will not tolerate attempts to co-opt our valuable brand and goodwill."
In a separate case in December 2002, Register.com also obtained an injunction against Domain Registry of America (DROA) from confusing Register.com customers into believing that DROA was their existing registrar when it was not in fact the case.
"We are confident that the injunction against Verio will be made permanent and will serve as a warning to others that Register.com won't allow its customers to become victims of deceptive schemes," said Roni Jacobson, General Counsel of Register.com.
The Internet Corporation for Assigned Names and Numbers (ICANN) requires all registrars to provide public access to their customers' contact information, in what is known as a 'Whois' record. Register.com commenced legal action against Verio after learning through customer complaints that Verio was mining this database to solicit Register.com customers to purchase Web site hosting services from Verio. The customers expressed anger at being solicited by Verio, as the vast majority was under the mistaken assumption that Register.com had forwarded their personal information to Verio. During expedited discovery, Register.com learned that these practices were a deliberate part of a Verio marketing campaign to confuse customers into thinking there was an affiliation between the two companies.
Filed in August 3, 2000, Register.com's complaint accused Verio of deceiving Register.com's customers with misleading marketing tactics and violating the terms of use for Register.com's Whois database. Register.com moved to preliminarily enjoin Verio's activities, alleging that they constituted breach of contract, trespass to chattels in relation to its computer database, violation of the Computer Fraud and Abuse Act and violation of the Lanham Act. In December 8, 2000, the District Court found Register.com likely to succeed on the merits of each of these claims and granted the injunction. Subsequently, Verio appealed the District Court's decision in front of the Second Circuit Court. The appeal process was delayed by the untimely death of one of the Second Circuit judges on the case. Register.com ultimately prevailed when the order to affirm the injunction was handed down last week. The Second Circuit Court of Appeals is the court directly below the United States Supreme Court.
About Register.com
Register.com, Inc. (www.register.com) is a leading provider of global domain name registration and Internet services for businesses and consumers that wish to have a unique address and branded identity on the Internet. With over three million domain names under management, Register.com has built a brand based on quality domain name management services for small and medium sized businesses, large corporations, as well as ISPs, telcos and other online businesses.
In September 2003, Register.com was named among Deloitte & Touche's Technology Fast 50 in New York. The Company was founded in 1994 and is based in Manhattan.
Statements in this announcement other than historical data and information constitute forward-looking statements, and involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. These potential risks and uncertainties include, among others, risks associated with the Company's restructuring process and future business plan, including the risk that expected cost reductions and increased revenues may not be realized at all or in the intended time frame, risks associated with the Company's recently completed $120 million self-tender offer, uncertainty of future revenue and profitability from existing and acquired businesses, increasing competition across all segments of the domain name registration business, risks associated with high levels of credit card chargebacks and refunds, uncertainty regarding the launch of the .pro top level domain, customer acceptance of new products and services offered in addition to, or as enhancements of, our registration services, uncertainty of regulations related to the domain registration business and the Internet generally, the rate of growth of the Internet and domain name industry, risks associated with any extraordinary transactions we may pursue and other factors detailed in our filings with the Securities and Exchange Commission, including our quarterly report on Form 10-Q for the period ended September 30, 2003 currently on file.
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