Operators of the ".biz" domain name have agreed to refund the "nonrefundable" application fees it had collected as part of the initial awarding of names in 2001.

Radio disc jockey David Smiley and other applicants had filed a class-action lawsuit accusing NeuLevel Inc. of running an illegal lottery because losers do not get their applications fees returned.

Before opening ".biz" to general registrations on a first-come, first-served basis, NeuLevel had permitted businesses to submit an online request with an application fee of about $2. For multiple submissions for the same name, one was picked at random.

Under the proposed settlement, which received preliminary court approval in December, businesses could get back up to $2 per application. NeuLevel did not admit any wrongdoing. Claim forms are available at http://www.neulevel.biz and are due Feb. 28.

Details at: http://www.twincities.com/mld/twincities/business/4862053.htm