RealNames, based in Redwood City, Calif., will lay off about 80 employees on Monday and will begin the process of liquidating its assets, said the source, who asked to remain anonymous.

Triggering the shutdown was a decision by Microsoft Corp., which allows keywords to resolve in its popular Internet Explorer (IE) Web browser, not to renew its exclusive contract with RealNames, the source said.

RealNames keywords are simple words and word combinations that can be linked to existing Internet addresses. For instance, IE users who type "RealNames" into their address bars are automatically taken to RealNames' Web site at www.realnames.com.

RealNames sold the keywords, which only resolve in IE browsers, for $49 to $498 per year, depending on the service level and the popularity of the keyword registered. Many Internet domain-name retailers sell keywords managed by RealNames along with traditional domain names.

The keywords will continue to function until the end of June, when Microsoft's final contract with RealNames is set to lapse, the source said.

RealNames signed its original contract with Microsoft in March 2000.

RealNames appeared to be on steadier ground last October, when it inked a deal under which Internet addressing giant VeriSign agreed to offer the keywords to its customers as an add-on service.

Founded in 1996, RealNames landed venture funding commitments totaling more than $100 million, including a $70 million round closed in August 1999 and an additional $46.5 million round closed in December 2000. Some of the lead investors included Morgan Stanley Dean Witter Venture Partners, Strong Capital Management and Goldman Sachs Capital Partners.

Reported By Washtech.com, http://www.washtech.com

11:25 CST