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12|24|2008 03:17 pm EDT

Verizon Wins $33 Million Judgement Against Registrar OnlineNic

by Adam Strong in Categories: Legal Issues

According to Businesss Week and other sources, Verizon has won a legal battle against registrar OnlineNic in a default judgement. The decision awarded Verizon $50,000 per domain name (663 in total).  Andrew at DomainNameWire points out that this is one of several cases Verizon has brought up against domain name companies. Most of the past cases were settled, most likely for less than $33 million.

One has to wonder why OnlineNic,  a US based registrar, failed to negotiate settlement terms or even participate in the legal proceedings like others who have been sued by Verizon. Verizon representatives point out

OnlineNIC did not appear in court or send a lawyer to defend against the charges.

OnlineNic has a US presence and a US address listed in the whois. However, I believe the company is owned by parent company China Channel based in China.  I’m not a lawyer, so I don’t know the intricacies of collecting on a judgment like this.  I imagine that their presence in the US makes them just as susceptible to suit as any other company.  Anyone of our readers in the legal arena care to comment ??

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10 Comments

[…] $1K and $100K per domain. Very little is known about the actual case, and nearly all of the blog posts and press coverage simply restate the press […]

RegFeeNames.com

December 25, 2008 @ 3:01 am EDT

Why Why Why – Do people still cybersquatt on these trademarks.

With OnlineNic not going to court shows they know they were wrong and werent going to win the case.

I think they shall be going out of business if they pay $33mil – I dont see many people recovering from this next year.

Regards,

Robbie

David

December 25, 2008 @ 7:41 pm EDT

I can’t believe that.
OnlineNic seems to be a top domain registrar, which should not have done this. He deserves it if it’s true.
By the way, $50,000 is much too expensive for a domain with the phrase “verizon”.

Domain Names Articles

December 26, 2008 @ 8:30 am EDT

so, OnlineNIC will continue their work operation?

sergei

December 26, 2008 @ 3:18 pm EDT

I would imagine that Verizon, if they wished to, could quite easily enforce
this Judgment against OnlineNic in the USA ,as since OnlineNIC have a presence
in USA any Court will allow them to do so. Also I would think Verizon could get their hands on all the domains owned by Online NIC as well up to value
of $33M.

Derek Newman

December 26, 2008 @ 4:39 pm EDT

Many defendants have two misunderstandings about the law. The first is that a limited liability entity (such as a corporation or LLC) always protects against personal liability. The second misunderstanding is that judgment creditors cannot foreclose on domain names and other assets.

Any person who is involved in the registration, use, or trafficking of a domain name at issue in a cybersquatting case is potentially on the hook. Accordingly, the OnlineNic principals are in the line of fire, and Verizon will likely pursue them next. Additionally, any valuable names registered to OnlineNic, its principals, or related parties will be at issue in a post-judgment seizure proceeding.

Business people need to defend these cases. OnlineNic might have had a valid defense, and may have had to pay lawyers but nothing to Verizon. In any event, a competent domain name lawyer could have negotiated a deal with Verizon that would have shielded personal assets, saved the company, and prevented against asset seizures. Now, the OnlineNic principals will spend the next several years running from Verizon’s collection machine, and in the end will pay much more than lawyers and a settlement would have cost.

-Derek Newman, derek@newmanlaw.com

wannadevelop.com

December 27, 2008 @ 5:24 am EDT

Next christmas, OnlineNIC will be just a memory… The company isn’t going to be able to take this little $33m hit or put up a fight either I suspect.

Too bad.. They had a pretty good 10+ year run.

Mike
http://www.wannadevelop.com

[…] when Thiele did not respond. Thiele may wish to count his blessings in this case, considering Verizon was just recently awarded $50,000 each for the OnlineNic domain name squatting violations th… (c) 2008 DomainNameNews.com DomainFest Global: January 28th to 30th in Hollywood California. […]

[…] our previous post about the news that Verizon had won a default judgment against domain registrar OnlineNic, we pointed out an important fact in the case. The registrar OnlineNic is a owned by a Chinese […]

willie

December 29, 2015 @ 5:49 pm EDT

How do i fill out the application to add my name to the judgment

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