To: 2MAR$ who wrote (5058 ) 5/16/2001 5:39:42 PM From: 2MAR$ Respond to of 5732 VeriSign, Commerce Officials To Resume Talks Thurs>VRSN By Peter Loftus Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Officials from VeriSign Inc. (VRSN) and the U.S. Department of Commerce plan to resume talks Thursday regarding VeriSign's proposal to extend its monopoly on operating the central database of most Internet addresses. The two sides didn't meet Wednesday, VeriSign spokesman Brian O'Shaughnessy said. Talks in Washington began late Monday afternoon and continued Tuesday. O'Shaughnessy again expressed confidence that the Commerce Department would approve the agreement VeriSign reached last month with the Internet Corporation of Assigned Names and Numbers, or Icann, the nonprofit group charged by the federal government with overseeing the allocation of Internet domain names. Under that pact, VeriSign would maintain control over the central registry of names ending in .com without having to shed its retail business, or registrar, Network Solutions. A 1999 agreement would force VeriSign to sell or spin off that unit. However, the latest agreement would require VeriSign to give up control of the .org registry in 2002 and open the .net registry to competition in 2006. VeriSign collects $6 annually for each name registered, even if it is sold at retail by another company. As of March 31, there were 30.6 million active names ending in .com, .org and .net in VeriSign's registries. "The reality is that certainly we are moving towards resolution on the revised registry agreements," O'Shaughnessy said. "The opportunity exists for VeriSign to move forward with the existing registry agreements should Commerce come back with a negative response. However, I don't believe that's likely." After meeting with VeriSign officials for a few hours Monday, Commerce Department General Counsel Ted Kassinger said he was confident the department would reach an agreement with VeriSign "in the near term." Before the Monday meeting, a Commerce spokesman said the department had concerns about the VeriSign-Icann pact. Officials from the Commerce Department and Icann couldn't be reached for comment Wednesday. The Wall Street Journal reported Tuesday that the Commerce Department asked VeriSign to address Justice Department antitrust concerns before approval could be granted. "We're 90 percent there," O'Shaughnessy said. "There are some minor issues to resolve." The VeriSign-Icann pact has been criticized by some competitors and short-sellers who allege the agreement is illegal and would give VeriSign an unfair market advantage. -By Peter Loftus, Dow Jones Newswires; 201-938-5267; peter.loftus@dowjones.com (END) DOW JONES NEWS 05-16-01 05:38 PM *** end of story ***