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Verisign settles one of its lawsuits against XYZ

Lawsuit involved switching backend providers for three top level domain names.

Verisign and XYZ have reached a settlement in one of their ongoing lawsuits.

Verisign sued XYZ last year after XYZ acquired the rights to the .theatre, .security and .protection top level domains.

The original applicants for these domain names had signed backend registry service contracts with Verisign. When XYZ acquired them, it transferred the backend services to competitor CentralNic.

Verisign sued over tortious interference with a contract and business conspiracy.

XYZ CEO Daniel Negari posted a carefully-worded statement yesterday, no doubt approved as part of the settlement:

I am pleased to report that the recent case filed by Verisign against CentralNic, Ltd., XYZ and myself has been settled. After looking at the claims in dispute, we regret that as a result of our acquisition of the .theatre, .security and .protection extensions and our arrangement for CentralNic to serve as the backend service provider for these extensions, that Verisign was prevented from the opportunity to pursue monetization of those relationships. As ICANN’s new gTLD program continues to evolve, we would caution others who find themselves in similar situations to be mindful of the existing contracts extension owners may have with third parties.

Verisign and XYZ are still involved in appeals court for a false advertising charge levied by Verisign.

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  1. Brad Newberg says

    More than “carefully worded,” that seems like a very specific apology, which is pretty rare. In almost every settlement you will ever see, the parties simply release statements that the matter has been settled and they are pleased to have reached a resolution. Wording such as “we regret” our actions, and a description of what happened to VeriSign, and a caution to others not to do what XYZ did, sounds like he absolutely had to make such statement and, regardless of any other terms in the settlement, he must have realized he had a lot at risk. Seems like it must have been a pretty good settlement for VeriSign overall as, in my experience, it is pretty hard to make a defendant give that sort of a statement

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