A federal court in Arizona today ruled in favor of our client whose domain name was stolen from her eNom account, apparently by a hacker based in China.
Our client, the plaintiff, is a domain name investor who registers generic and descriptive domain names that have value, holding them for development or possible resale. The domain name at issue was <640.com>. Domain names consisting solely of numbers have particular value in China due to their ability to transcend language barriers and provide for limitless usage possibilities.
The defendant appeared to use a number of different proxy servers to mask his true IP address, location, and identity in order to access plaintiff’s account and perpetrate the theft. After gaining access to plaintiff’s account with eNom, defendant transferred the domain to his own eNom account. By the time our client found out, the defendant had already re-transferred the domain to a separate account with GoDaddy. GoDaddy refused to return the domain name to plaintiff.
Lewis & Lin filed suit in U.S. District Court in Arizona (where GoDaddy’s is located), and subsequently filed a motion to effect service on the defendant by email, which was granted. Upon the defendant’s failure to respond, the federal court entered default against him, and then issued judgment. The judgment declared plaintiff as the rightful owner of the domain name, and further made the following order:
Upon Plaintiff’s request, Defendant YAN WANG; their officers, directors, employees, agents, subsidiaries, distributors and all persons in active concert or participation with them having notice of this Order; and those with actual notice of this Order, including any domain-name registrars, domain-name registries or their administrators, are directed to immediately record, change, or assist in changing the registration of record for the Domain Name in Plaintiff’s name and into an account with a domain-name registrar of Plaintiff’s choosing.
The case is Tai v. Wang, No. CV-15-01857-PHX-GMS (D. Ariz. Jan 28, 2016).
A federal court in Arizona has delivered a victory to Lewis & Lin’s client, denying a motion for a preliminary injunction seeking to transfer a domain name to the plaintiff in a breach of contract dispute.
Plaintiff alleged to have entered into a contract to buy the domain name on Sedo, the online domain name marketplace. Claiming that it did not receive the domain name after tendering the purchase price, plaintiff sued in Arizona, the state of its principal place of business. Lewis & Lin opposed, arguing that its client, a resident of Lebanon, did not have sufficient contacts with Arizona related to the case to support the exercise of jurisdiction over him.
Plaintiff asserted that our client purposely availed himself to the privilege of doing business in Arizona by (1) registering the domain name with GoDaddy, which is based in Arizona; (2) engaging in contract negotiations with plaintiff, who was based in Arizona; and (3) engaging in various post-complaint activities after knowing that plaintiff was based in Arizona.
Lewis & Lin argued that none of these contacts satisfied the inquiry required to assert jurisdiction over the defendant. First, the registration of the domain name with GoDaddy was not a “but for” cause of the lawsuit. Second, the defendant could not be said to have “purposely availed” himself to Arizona by negotiating through Sedo’s double-blind sales platform. And third, the lawsuit did not arise out of the alleged post-complaint activities.
The court agreed with Lewis & Lin on all of our points. In a nine-page opinion, the court ruled that the plaintiff “has not shown a likelihood of success on the merits or the existence of serious questions because Defendant is not subject to personal jurisdiction in this Court.” The case is Inter123 Corporation v. Ghaith, 2014 WL 1343508, No. CV-14-00463 (D. Ariz. Apr. 4, 2014).
In an order granting a motion for preliminary injunction, Judge Naomi Reice Buchwald of the Southern District of New York ordered defendant, a former employee of plaintiffs,to return account passwords and login information for plaintiffs’ websites, email accounts, social media accounts, and third-party servers.