Transfer dispute was resolved in a legal settlement.
Namecheap and Tucows (NASDAQ: TCX) have entered into a settlement agreement to resolve a transfer dispute.
Namecheap, a former Enom reseller, sued Tucows (which now owns Enom) because it said that Tucows was dragging its feet over transferring millions of domain names to Namecheap. Tucows said it was just a matter of using the appropriate mechanism to transfer the domains.
Following a court order, Tucows transferred 2.65 million domains to Namecheap in January 2018. It then entered into a settlement agreement with Namecheap in September 2018, under which Namecheap agreed to pay an “administrative fee” to Tucows for services related to the transfer. Tucows transferred a further 0.24 million domains later that month. The company will transfer the remaining 0.4 million domains to Namecheap in the fourth quarter.
The net-net: Namecheap eventually got the names transferred the way it wanted and Tucows got at least some of the costs covered.
The settlement was disclosed in Tucows’ 10-Q filed with the SEC yesterday.