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Court Dismisses .Web Lawsuit, Says Agreement Not to Sue Is Enforceable

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"Judge Percy Anderson of the U.S. District Court, Central District of California has granted ICANN's motion to dismiss in a lawsuit brought by a subsidiary of new TLD company Donuts," reports Andrew Allemann in Domain Name Wire. "Donuts filed a lawsuit because it was upset that Verisign was bankrolling another applicant's bid for the domain. Donuts believed that the applicant, Nu Dot Co, had undergone changes that required updating information with ICANN prior to the auction. ... But new TLD applicants agreed to not sue ICANN. Donuts argued to the court that this covenant not to sue was unenforceable because it was void under California law and unconscionable."


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