Lawsuit over FACI.com is about more than just a single domain name.

In April I wrote about how a WIPO panel “stole” FACI.com from BuyDomains (NameMedia) in a faulty UDRP decision. I also mentioned that I hoped BuyDomains would turn to the courts to over the issue.

On Friday George Kirikos noticed that the company did indeed turn to the courts, filing a lawsuit in Massachusetts. The suit is fairly bread-and-butter for declaratory and injunctive relief.

NameMedia doesn’t always challenge adverse UDRP decisions in court. But filing this suit was a smart move. Here’s why.

It can keep the domain

This one is kind of obvious. By filing the lawsuit the UDRP will be stayed and NameMedia can keep the domain pending the outcome of the suit.

I’m not sure how much the company would have sold this domain for. Odds are it will spend more on the lawsuit than the domain is worth to it. But…

Ward off future UDRPs

The biggest reason to file a case like this is to put other potential complainants on notice: you’ll fight to protect your property.

Tucows has sent this message loud and clear. If you file a UDRP against the company they will take you to court. In Ontario, no less. It amazes me that some companies still file UDRPs against Tucows’ surnames portfolio. It’s a waste of money. If you win the UDRP you’ll find yourself on the other end of a lawsuit. I guess some complainants still don’t know how to use Google to find the many stories about Tucows doing this.

Have a cleaner image

UDRP losses can be used against you in future UDRP cases. If NameMedia wins this lawsuit, then any future complainant that cites the FACI.com loss will be greeted with a response about how that loss didn’t stick.

There’s also the issue of retroactive penalties for UDRP losses. ICANN’s guidebook for new top level domains labels anyone who has three “final” adverse cybersquatting rulings within a specified period of time as a bad apple. They (technically) can’t apply for new TLDs. Who knows when another retroactive penalty will be slapped on domain name owners?

Source from http://domainnamewire.com/

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