May 13, 2002 
RealNames Shuts Down, Blaming Microsoft 
By Brian Morrissey 

RealNames Corp., a pioneering provider of an alternative to the domain-name system, said it would shut down, pinning the blame on Microsoft for declining to renew a key contract with the company. 

The Redwood City, Calif.-based company said it laid off its 83 employees and began the process of liquidating its assets. The move came after Microsoft decided not to renew its contract with RealNames, which was the exclusive provider of keywords for the Internet Explorer browser. The function allowed a user to type in a company name, for instance, instead of trying to remember if its official Internet address. A Web user looking for General Electric would simply type the name, instead of www.ge.com. 

RealNames will cease operations on June 30, two days after its two-year contract with Microsoft expires. In March 2000, Microsoft made RealNames its exclusive provider of keywords for Internet Explorer in exchange for a 20 percent stake in the company and $40 million. RealNames paid Microsoft $15 million last year, but was unable to pay the $25 million due this month. Instead, RealNames executives went to Microsoft with a deal to continue the relationship, but they were rebuffed. 

When RealNames and Microsoft inked the deal in 2000, it was widely seen as an endorsement that RealNames would become a key player in simplifying the sometimes-mystifying Internet address system, allowing companies to retain their brand names. In fact, some spoke of RealNames as a potential successor to the domain-name system that had trouble deciding who was the rightful owner of some domains. 

More at: http://www.internetnews.com/xSP/article.php/8_1121101