12|24|2008 03:17 pm EDT
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 ??