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What is the impact of second-level registrations on third-level registrations (or, “how does it work?”)?

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What is the impact of second-level registrations on third-level registrations (or, “how does it work?”)?

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If someone has registered a second-level domain, such as smith.name, then no one can register a third-level domain, such as john.smith.name. The reverse is also true: If someone has registered a third-level domain, such as john.smith.name, then no one can register a second-level domain, such as smith.name.

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