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GoDaddy, PorkBun and Endurance win domain “blocking” court fight

Kevin Murphy, June 17, 2020, Domain Policy

Three large registrar groups last week emerged mostly victorious from a court battle in which a $5.4 billion-a-year consumer goods giant sought to get domains being used in huge scam operations permanently blocked.

Hindustan Unilever, known as HUL, named Endurance, GoDaddy and PorkBun in a lawsuit against unknown scammers who were using cybersquatted domains to rip off Indians who thought they were signing up to become official distributors.

The .in ccTLD registry, NIXI, was also named in the suit. All of the domains in question were .in names.

Among other things, HUL wanted the registrars to “suspend and ensure the continued suspension of and block access to” the fraudulent domains in question, but the judge had a problem with this.

He’d had the domain name lifecycle explained to him and he decided in a June 12 order (pdf) that it was not technically possible for a registrar to permanently suspend a domain, taking into account that the registration will one day expire.

He also defined “block access to” rather narrowly to mean the way ISPs block access to sites at the network level, once again letting the registrar off the hook.

Judge GS Patel of the Bombay High Court wrote:

Any domain name Registrar can always suspend a domain that is registered. But the entire process of registration itself is entirely automated and machine-driven. No domain name registrar can put any domain names on a black list or a block list.

Where he seems to have messed up is by ignoring the role of the registry, where it’s perfectly possible for a domain name to be permanently blocked.

NIXI may not have its hands directly on the technology, but .in’s EPP registry is run by back-end Neustar (now owned by GoDaddy but not directly named in the suit), which like all gTLD registries already has many thousands of names permanently reserved under ICANN’s direction.

Patel also seems to assume that NIXI doesn’t get paid for the domain names its registrar sells. He wrote:

The relief against Defendants Nos. 14 and 15, the dot-IN registry and NIEI [NIXI] at least to the extent of asking that they be ordered to de-register or block access is misdirected. Neither of these is a registrar. Neither of these receives registration consideration. Neither of these registers any domain name. The reliefs against them cannot therefore be granted.

NIXI actually charges INR 350 ($4.60) per second-level .in name per year, of which a reported $0.70 goes to Neustar.

The judge also ruled that the registrars have to hand over contact information for each of the cybersquatters.

He also ordered several banks, apparently used by the scammers, to hand over information in the hope of bringing the culprits to justice.