In a letter to NeuLevel, Amazon.com threatened to sue unless the company altered its registration terms. The terms currently allow for multiple applications on the same domain name, which increases an applicant’s chances of securing the name because the “winner” is chosen at random from all duplicate applications. NeuLevel is already facing a lawsuit filed by other parties alleging that it is operating an illegal lottery.
Amazon.com has called for the prohibition of what it sees as an illegal lottery and is also demanding that NeuLevel allows registered trade mark holders to enjoy priority registration rights. It added that NeuLevel should refund any application fees paid by those who had registered more than once for the same dot.biz domain name.
In response to the criticisms, NeuLevel has raised an action for a declaratory judgement in the Virginia federal court, asking a judge to confirm that its registration policy does not violate any federal trade mark laws. It also wants a declaration that it is not subject to any federal laws which prohibit certain types of lotteries. The lawsuit cites the threat to sue by Amazon.com.