Three US law firms have filed a law suit in a Los Angeles court against NeuLevel, the company controlling the new .biz domain name registry. According to news agency Reuters, the lawsuit alleges that NeuLevel's system for allocating domain names amounts to an illegal lottery because the company is accepting payment from prospective domain name holders without granting them rights to specific domains.

NeuLevel was chosen by the internet's technical co-ordination body, the Internet Corporation for Assigned Names and Numbers (ICANN), to deal with the registration of the new .biz domains. The allocation process adopted by NeuLevel is based on parties paying a small fee to reserve a particular domain name during a specified period ending in September. However, applicants are not given any domain name rights until the end that period and if more than one request has been made for the same domain, then the rights to that domain will be determined by a lottery.

The suit argues that this process encourages applicants to make several applications and payments for each domain name in an attempt to increase their chances of success in the event of the domain names rights being determined randomly - thereby amounting to a lottery.

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.